Japan preliminary Manufacturing PMI for May 53.2 (prior 53.5) & Services 51.7 (prior 50.7)

Jibun Bank Flash Japan PMIs, all well into expansion (>50)

• preliminary Manufacturing PMI for May 53.2 (prior 53.5), lowest for 3 months
• Services 51.7 (prior 50.7), highest for 5 months - recovery from coronavirus restrictions cotninues
• Composite 51.4 (prior 51.1)

Commentary from the report:

• “Flash PMI data indicated that activity at Japanese private sector businesses remained in expansion territory for the third consecutive month midway through the second quarter of 2022. Moreover, the rate of growth quickened from April to the sharpest seen since last December, led by the strongest rise in services activity for five months. On the other hand, the expansion in manufacturing output was the softest recorded in the current three-month growth sequence.
• “Private sector firms reported that the reduced impact of COVID-19 Covid-19 Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Read this Term had lifted services activity, most notably in the tourism sector as pandemic-related restrictions were eased further. That said, the renewed introduction of lockdown measures across China and economic sanctions placed on Russia amid the Ukraine war had exacerbated supply chain disruptions, with greater reports of material shortages and severe delivery delays.
• “As a result, there was a further intensification in price pressures across the private sector, as firms reported series-record rises in both input and output prices. Moreover, uncertainty regarding the outlook for price and supply conditions dampened business confidence, which was at its softest since August 2021.”