Jibun Bank S&P Global PMI Flash / Preliminary for August 2024 for Japan
Manufacturing PMI 49.5
- prior 49.1
Services 54.0
- prior 53.7
Composite 53.0
- prior 52.5
Commentary from the report, in summary:
- Business Activity: Continued solid expansion in Japanese private sector firms in August 2024.
- Growth Drivers: Services sector activity accelerated; manufacturing output returned to growth after a brief decline in July.
- Demand Trends: Divergence observed; solid rise in new business for services, but subdued demand in the goods-producing sector.
- Business Confidence: Optimism remained above average but eased to a 19-month low due to concerns over labor constraints and rising price pressures.
- Labor and Employment: Service sector faced labor constraints, leading to slower employment growth.
- Price Pressures: Selling price inflation dropped to its lowest since November 2023, despite rising input costs.
- Margin Pressures: Both manufacturers and service sector firms faced margin pressures as they partially absorbed price increases to stay competitive and support sales.
