Economic Buzz: Japans Manufacturing Activity Continues To Expand In June

1 Jul 2022 , 11:42 AM

The manufacturing sector in June continued to expand in Japan, albeit at a slower pace, the latest survey from Jibun Bank showed on Friday with a manufacturing PMI score of 52.7. Thats down from 53.3 in May although it remains above the boom-or-bust line of 50 that separates expansion from contraction.This indicated a seventeenth consecutive monthly improvement in the health of the sector, although the pace of expansion was the joint softest since last September. The weaker headline reading was partly due to a near-stagnation of new orders. While remaining in expansion territory, the latest increase in sales was only fractional and the slowest in the current nine-month sequence of growth. The slowdown in demand was commonly linked to rising prices and weaker client confidence amid sustained material shortages and delivery delays. Firms also noted a reduction in new export sales in June for the fourth consecutive month, although the decline was only modest, as persistent weakness in China due to lockdowns were partially offset by stronger demand in North America.Powered by Commodity Insights