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 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.”