Latest news with #JapanManufacturingPurchasingManagers'Index
Yomiuri Shimbun
3 days ago
- Business
- Yomiuri Shimbun
Japan Factory Declines Slow in May but Tariff Worries Persist, PMI Shows
Reuters A worker walks near a factory at the Keihin industrial zone in Kawasaki, Japan, March 8, 2017. TOKYO, June 2 (Reuters) – Japan's factory activity shrank at the slowest pace in five months in May as the decline in new orders eased, but worries over U.S. tariffs have dampened the recovery from an almost year-long contraction, a private-sector survey showed on Monday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) rose to 49.4 in May from 48.7 in April, marking the 11th consecutive month of staying below the 50.0-line that indicates contraction. Still, the reading was higher than the flash figure of 49.0 and the highest so far this year. 'Manufacturing conditions in Japan moved closer to stabilization in May, according to latest PMI data, with companies signaling a softer decline in sales and improved jobs growth,' said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. Among sub-indexes, new orders fell for the 24th straight month, with manufacturers citing U.S. tariffs and increased client hesitancy as factors behind subdued demand conditions. Factory output also contracted for a ninth consecutive month, at a quicker pace than in April, the survey showed. To mitigate the impact of the U.S. tariffs on cars and other manufacturing sectors, which are the backbone of the Japanese economy, Tokyo has held four rounds of trade talks with Washington and plans a fiscal package to support households and businesses. In a positive sign, input cost inflation eased to a 14-month low in May, while output price inflation slowed to the softest in nearly four years. Employment increased for the sixth month in a row as firms filled vacancies and prepared for anticipated production increases, according to the survey. Business confidence on future output strengthened from April's near five-year low, with firms citing expectations of stronger market demand particularly in the semiconductor industry. However, some expressed concerns over U.S. tariffs, inflation and Japan's declining population as potential headwinds to growth, the survey showed.
Yahoo
01-04-2025
- Business
- Yahoo
Japan's factory activity declines pick up, PMI shows
TOKYO (Reuters) - Japan's factory activity declines accelerated in March as demand weakened and the escalating U.S. trade war clouded the manufacturing outlook, a private-sector survey showed on Tuesday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) fell to 48.4 in March from 49.0 in February, hitting the lowest in 12 months. Although the final reading was slightly higher than the flash figure of 48.3, it also marked the ninth straight month below the 50.0 threshold that separates growth from contraction. "Indices for output and new orders fell further into contraction territory, as companies noted weaker demand from both domestic and international clients," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. Output declined for the seventh straight month and at the quickest pace in a year, while new orders contracted for a 22nd consecutive month. New export business also fell slightly, with manufacturers citing muted demand from key markets such as China and the United States, according to the survey. Companies' outlook for future demand improved from February, when it hit the lowest since 2020, but the recovery was slow, due in part to "greater uncertainty over the global economic outlook and trade environment," Fiddes said. U.S. President Donald Trump last week unveiled a 25% tariff on imported cars to take effect on April 3, in what could be a major blow to Japan's manufacturing sector and the broader economy. Meanwhile, employment emerged as a bright spot, with firms adding workers at the fastest pace in three months. Some companies said that they added to payrolls to fill in vacancies or in anticipation for greater demand ahead, according to the survey. Cost pressures remained high, with companies reporting sharp increases in expenses for labour, materials, energy and transport, exacerbated by an unfavourable exchange rate. "The latest survey showed historically strong increases in both input costs and selling prices in March, to suggest inflationary pressure across the sector remains acute," Fiddes added. Sign in to access your portfolio
