Japan's factory activity growth picks up, costs rapidly rise -PMI
Reuters
Published Aug 01, 2021 09:00PM ET
TOKYO (Reuters) - Japan's factory output growth picked up in July due to a stronger expansion of output and new orders, as manufacturers benefited from a continuing recovery of the coronavirus pandemic-hit global economy.
The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) in July rose to 53.0 on a seasonally adjusted basis from 52.4 in the previous month.
That compared with a 52.2 flash reading released last month.
"The Japanese manufacturing sector continued to see an improvement in operating conditions at the start of the third quarter," said Usamah Bhatti, economist at IHS Markit, which compiles the survey.
The PMI survey showed that overall output and new orders rose at a faster pace due to strong output in the electronics and auto sectors and solid demand for semiconductors. Firms' expectations for the year ahead remained firm.
Manufacturers, however, struggled with material shortages and logistical disruptions stemming from higher costs as input prices rose at the fastest pace since September 2008.
"Supply chain disruption continued to impact activity within the sector, with firms recording the second-greatest deterioration in lead times in over a decade," Bhatti said.
The world's third-largest economy is likely to grow at a slower pace than initially expected in both the second and third quarters, as coronavirus emergency curbs in Tokyo and some other areas are weighing on consumption, a Reuters poll found https://www.reuters.com/business/japans-q3-growth-forecast-cut-new-pandemic-curbs-hit-2021-07-14 last month.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.