2023.03.2400:36:00UTC+00Japan Manufacturing PMI Improves To 48.6 In March - Jibun

The manufacturing sector in Japan continued to contract in March, albeit at a slower pace, the latest survey from Jibun Bank revealed on Friday with a manufacturing PMI score of 48.6.

That's up from 47.7 in February, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

Both output and new orders were scaled back further in the latest survey period, although the respective rates of reduction were the softest for five months. Moreover, there was some evidence of easing cost pressures as indicated by the rate of input price inflation dipping to the lowest since August 2021, while manufacturers were also buoyed by improving supply chains with average lead times for inputs extending to the lowest extent for 29 months.

The survey also showed that the services PMI improved from 54.0 in February to 54.2 in March.

The latest reading was the strongest since October 2013, and came amid a further increase in total new business received by service providers that was the steepest for ten months. Meanwhile, new export business rose at the quickest rate since the series began in September 2014. Stronger demand conditions meanwhile encouraged firms to raise selling prices for the eleventh month in a row, and at the fastest rate since October 2019.