The preliminary PMIs from Japan, Jibun Bank / Markit
Manufacturing 52.2
prior 52.4
Services 46.4
prior 48.0
18th month in a row for this indicator in contraction)
Composite 47.7
prior 48.9
Some of the commentary from Markit, familiar stuff:
- Survey members attributed the deterioration in business conditions to persistent rises in COVID-19 cases and state of emergency measures which dampened activity and demand.
- Short-term disruption to activity is likely to continue until the latest wave of COVID-19 infections passes and restrictions enacted under state of emergency laws are lifted.
- input costs across the private sector rose at the fastest pace since September 2008
Some brighter points, but not too bright:
- Employment levels in the Japanese private sector continued to expand, however the rate of job creation eased to the softest in the current six-month sequence and was only fractional.
- Japanese private sector firms were optimistic that business conditions would improve in the year ahead ... Positive sentiment stemmed from the expectation that the virus would be suppressed as the vaccination programme continues
