Japan's factory activity shrinks at slowest pace in six months - PMI | Inquirer Business

Japan’s factory activity shrinks at slowest pace in six months – PMI

/ 09:17 AM April 21, 2023

TOKYO  – Japan’s manufacturing activity shrank at the slowest pace in six months in April on a softer decline in sales, while the service-sector stayed solid, a preliminary survey showed on Friday, suggesting a patchy post-COVID economic recovery.

The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) rose to a seasonally adjusted 49.5 in April, from a final 49.2 in the previous month.

The index remained below the 50-level that separates contraction from expansion for a six straight month in April, pointing to the persistent struggles for factories even though the worst appeared to be over for the sector.

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Service sector expands

On the plus side, service-sector activity expanded for an eight straight month in April supported by gains in new orders and new export business, the same survey showed.

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“Japan’s private sector continued to expand solidly at the start of Q2, according to latest Flash PMI data, with a resurgent service economy helping to offset a weak manufacturing sector performance,” said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, which compiles the survey.

“While service providers anticipate further improvements in demand and operating conditions as the impact of COVID-19 fades, a number of manufacturers expressed concerns over the economic outlook, rising costs and component shortages,” Fiddes said.

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Reuters Tankan survey showed on Wednesday big Japanese manufacturers remained pessimistic in April for a fourth straight month as jitters over Western banks added to slowing global growth. But it also showed the service sector mood improved for a second straight month to a four-month high.

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The au Jibun Bank flash services PMI grew to a seasonally adjusted 54.9 this month, little changed from 55.0 in March, and marked the second highest reading since October 2013.

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The au Jibun Bank Flash Japan composite PMI, which covers both the manufacturing and service sector activities, was at 52.5 in April, remaining above the 50-level for a four straight month.

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https://business.inquirer.net/387579/japans-factory-activity-shrinks-at-fastest-pace-in-2-1-2-years-pmi

https://business.inquirer.net/381166/japan-dec-service-sector-activity-rebounded-on-tourist-boom

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TAGS: Japan, manufacturing, PMI, services sector

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