JEQ - Japan manufacturing sector shrinks in June on soft orders
2023-07-03 02:03:51 ET
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The au Jibun Bank Japan Manufacturing PMI was at 49.8 in June 2023, unrevised from preliminary estimates, and after a final 50.6 in May, which was the highest reading in seven months.
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This was the fifth contraction in factory activity so far this year, as both output and new orders shrank, with new export orders falling at the steepest pace since February.
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In response to weaker operating conditions, buying activity fell for the eleventh month in a row with the reduction being the joint-softest recorded this year.
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Employment increased to the second-fastest pace in the year to date.
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Finally, business sentiment strengthened to the strongest since October 2021 amid economic recovery.
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Commenting on the latest survey results, Usamah Bhatti at S&P Global Market Intelligence, said: "The weakened demand and output conditions had a two-fold benefit in the latest data. Pressure on supply chains eased further in June, with average lead times shortening for the second successive month. Though marginal, the degree to which delivery times quickened was the best in over seven years. This also helped ease inflationary pressures, pushing the Input Prices Index to a 28-month low."
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Earlier, BOJ Tankan: Japan business sentiment improves in Q2 .
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Japan manufacturing sector shrinks in June on soft orders