Japan’s manufacturing activity contracts at slower pace in Dec

Japan’s manufacturing activity contracted at a slower pace while the services sector lost some steam in December, private-sector surveys showed, weighing on the economy at end-2025.

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An employee working on the assembly line at Nanjo Auto Interior, a manufacturer of inside door panels and other parts for Mazda Motor, in Akita-kata, in Japan's Hiroshima prefecture. Japan's factory output waned slightly in December from November but demand for goods fell at the slowest rate in 1 1/2 years. PHOTO: REUTERS

(REUTERS)

Looking ahead to 2026, business confidence was robust but waned from the previous month, particularly in manufacturing, with the surveys attributing the uncertain outlook to global economic conditions, an ageing population and rising costs.