2023-03-24 01:21:32 ET
- The au Jibun Bank Japan Manufacturing PMI increased to 48.6 in March 2023 from February of 47.7, which was the lowest reading since September 2020, a preliminary estimate showed.
- This was the fifth straight month of contraction in the sector, as both output and new orders shrank at the softest pace in five months, while a decline in new export orders moderated.
- Meanwhile, firms increased employment levels for the twenty-fourth month running, though the rate of job creation eased, with backlogs of work declining at a faster pace.
- On the pricing front, input cost inflation slowed to the lowest since August 2021.
- As a result, output cost inflation also eased.
- Vendor performance improved to the smallest extent for 29 months, as supply pressures eased further.
- Finally, business sentiment strengthened to a five-month high.
- "Manufacturing firms signaled further downbeat figures at the end of the first quarter, with sustained reductions in both output and new orders," said Usamah Bhatti, economist at S&P Global Market Intelligence, which compiles the survey.
- Both factory output and new orders declined for a ninth straight month but the pace of contraction eased from February, the sub-index data showed.
- The au Jibun Bank flash services PMI rose to 54.2 seasonally adjusted in March from the previous month’s 54.0, the fastest pace since October 2013.
- Overall, the au Jibun Bank Flash Japan composite PMI was at 51.9 in March, advancing from last month’s final figure.
- ETFs: JEQ , EWJ , DXJ , FXY .
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Japan manufacturing shrinks at softer pace as both output and new orders shrank