TOKYO: Japan’s manufacturing activity returned to growth in June after nearly a year of contraction, but demand conditions remain murky due to worries over US tariffs and the global economic outlook, a private-sector survey showed on Monday (Jun 23).<\/p>\n
Meanwhile, the service sector’s expansion accelerated, pushing overall business activity to a four-month high, offering a counterbalance to the export-reliant factory sector amid diminished prospects for an early Japan-US trade deal.<\/p>\n
The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) rose to 50.4 from May’s final 49.4, ending 11 months of readings below the 50.0 threshold that indicate contraction.<\/p>\n
Among sub-indexes, factory output and stocks of purchases rebounded to growth from multi-month contraction, driving up the headline manufacturing PMI.<\/p>\n
However, new orders for manufactured goods, including from overseas customers, continued to decline, the survey showed.<\/p>\n
“Companies indicated that U.S. tariffs and lingering uncertainty over the global trade outlook continued to inhibit customer demand,” said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, which compiled the survey.<\/p>\n
Manufacturers’ confidence about their year-ahead output remained mostly unchanged from May.<\/p>\n
By contrast, the au Jibun Bank flash services PMI increased to 51.5 in June from 51.0 in May, thanks to new business growth, although growth for export businesses slowed slightly.<\/p>\n
Combining both manufacturing and service activity, the au Jibun Bank flash Japan composite PMI rose to 51.4 in June from May’s 50.2, reaching its highest level since February.<\/p>\n
Cost pressures across the private sector eased in June, with input prices rising at the slowest rate in 15 months, though output price inflation accelerated to a four-month high, the composite data showed.<\/p>\n
Employment was another bright spot, with workforce numbers increasing at the quickest pace in 11 months across both manufacturing and services sectors.<\/p>\n","protected":false},"excerpt":{"rendered":"TOKYO: Japan’s manufacturing activity returned to growth in June after nearly a year of contraction, but demand conditions…\n","protected":false},"author":3,"featured_media":7170,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,170,67,132,68],"class_list":{"0":"post-7169","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-japan","11":"tag-united-states","12":"tag-unitedstates","13":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114730964548171714","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/7169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=7169"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/7169\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/7170"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=7169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=7169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=7169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}