Japan's private-sector activity grows for first time in 6 months - PMI

Reuters

Published Oct 21, 2021 09:08PM ET

TOKYO (Reuters) - Japan's factory activity growth in October picked up from the previous month, while that of the services sector expanded for the first time in 21 months after an easing of coronavirus pandemic restrictions at home.

Manufacturers struggled with supply chain disruptions and surging raw material demand that fuelled the sharpest rise in input prices in more than 13 years, as the health crisis continues to impact the global economy.

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 53.0 in October from a final 51.5 in the previous month.

Key survey components showed output and new orders expanded thanks in part due to stronger overseas demand.

"Private sector businesses... noted an increase in aggregate new business for the first time since April, assisted by a quicker rise in export orders," said Usamah Bhatti, economist at IHS Markit, which compiled the survey.

"That said, firms continued to highlight sustained supply chain pressures and material shortages."

The au Jibun Bank Flash Services PMI Index rose to a seasonally adjusted 50.7 from the prior month's final of 47.8.

That meant services sector activity stayed above the 50.0 threshold that separates contraction from expansion for the first time since January 2020, before the economy went through its deep COVID-19 slump.