Japan's factory activity returns to growth after 11-month contraction: PMI
[TOKYO] Japan's manufacturing activity returned to growth in June after nearly a year of contraction, but demand conditions remain murky due to worries over US tariffs and the global economic outlook, a private-sector survey showed on Monday.
Meanwhile, the service sector's expansion accelerated, pushing overall business activity to a four-month high, offering a counterbalance to the export-reliant factory sector amid diminished prospects for an early Japan-US trade deal.
The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) rose to 50.4 from May's final 49.4, ending 11 months of readings below the 50.0 threshold that indicate contraction.
Among sub-indexes, factory output and stocks of purchases rebounded to growth from multi-month contraction, driving up the headline manufacturing PMI.
However, new orders for manufactured goods, including from overseas customers, continued to decline, the survey showed.
'Companies indicated that US tariffs and lingering uncertainty over the global trade outlook continued to inhibit customer demand,' said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, which compiled the survey.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Manufacturers' confidence about their year-ahead output remained mostly unchanged from May.
By contrast, the au Jibun Bank flash services PMI increased to 51.5 in June from 51.0 in May, thanks to new business growth, although growth for export businesses slowed slightly.
Combining both manufacturing and service activity, the au Jibun Bank flash Japan composite PMI rose to 51.4 in June from May's 50.2, reaching its highest level since February.
Cost pressures across the private sector eased in June, with input prices rising at the slowest rate in 15 months, though output price inflation accelerated to a four-month high, the composite data showed.
Employment was another bright spot, with workforce numbers increasing at the quickest pace in 11 months across both manufacturing and services sectors. REUTERS
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
9 hours ago
- CNA
Splurging is not the enemy. Splurging on impulse is
In over 10 years of blogging and talking publicly about money, I've found that people often equate financial savvy to being a miser. After all, conventional money wisdom is simple: 'Save more, spend less.' But being financially savvy doesn't mean saying no to all luxuries or spending only on cheaper items. Instead, it means knowing when to say yes or no, and how to do so with intention. Over the years, I've developed a mental checklist to help me make up my mind with any big splurges – whether it's tickets to Taylor Swift's Eras Tour, a S$300 dress, or a holiday trip overseas for my entire family. A key concept I use to guide my spending decisions is that of utility cost. VALUE IS MORE THAN THE NUMBER ON THE PRICE TAG I first learnt about utility cost during economics classes back in junior college, and it has stuck with me ever since. With any big-ticket purchase, instead of looking only at the price tag, I think about its utility. How many times do I expect to be able to use it? Can it offer me prolonged enjoyment, repeated uses or other long-term benefits? What are some unexpected costs I could incur in the future if I were to choose a cheaper alternative today? A cheap mattress, for instance, might hurt my back and lead to visits to chiropractors and masseuses. A S$20 running shoe with minimal cushioning or support could cause me injuries. A cheaper smartphone may come with lower camera specifications that would require me to either compromise on my work as a content creator or purchase additional equipment to make up for it. That was why I bought my wedding gown from Taobao, an online marketplace known for low-quality, super-cheap buys. I was expecting to wear it only once – and true enough, the dress has been gathering dust in my wardrobe since then. In contrast, I recently paid S$350 for a semi-designer dress from Bangkok because I expect to wear it more than 10 times for several upcoming occasions. For me, this higher utility justified the higher cost. This often gets missed in the oversimplified 'save more, spend less' narrative. It's not just about the money we're parting with; it is about how much value we're getting in return. Buying an expensive shirt or bag isn't necessarily a bad money decision in itself; only using it once or twice is. THINK LONG-TERM One easy way to help you gauge if something is worth the splurge: Divide the cost of the item by the number of times you (realistically) expect to use it. Otherwise, you can also define this simply as the value or satisfaction you expect to gain from the purchase. I hardly own any branded goods myself, but I recall how a good friend of mine previously bought a S$3,000 branded handbag which she used daily for her first three years of work. In her case, dividing the cost of her bag by the amount of time she used it extensively (S$3,000 divided by 3 years or 1,095 days) means her rough cost-per-use hovered under S$3. The bag also gave her plenty of other intangible benefits – for three years, she didn't have to switch bags or rotate her items between different bags, and she refrained from buying new fast-fashion bags. The bag even served as a conversation starter for her at networking events. To her, all this made her handbag more than 'worth' the S$3,000 she paid for it. When working out the cost-per-use value of a designer item, it helps to think about what it'll do for you, how versatile the piece is, whether you'll tire of it quickly, and if you're paying more for the logo than the craftsmanship. THE TRUE VALUE OF EXPERIENCES That's all well and good for consumer goods, but what about intangible experiences? Let's take travel for an example. I've had trips where I came back exhausted, overspent and underwhelmed; I've also taken holidays that helped me reconnect with myself, bond with loved ones, and return home recharged. The difference was almost never in how much money I spent, but rather in how well the trip was planned in accordance with what I truly enjoy. For instance, I've realised that I don't particularly enjoy or value visiting crowded tourist hot spots just to see, do or eat things popularised by social media. So, I no longer chase bucket-list destinations or viral TikTok itineraries. Instead, I focus my spending on trips that offer real value to my well-being. KNOWING WHEN TO SAY NO Still, we all have our weak spots, things that make it easy for us to get caught up in our own excitement. My system seems to have worked well for me over the last few years, with one exception: e-commerce livestreams. From beauty products to, home gadgets, there always seems to be a constant countdown, limited-quantity offers, and hosts who know exactly what to say to make my self-control disappear. I've often caught myself hovering over the 'buy now' button during a livestream, feeling like if I didn't act in that moment, I'd miss out on the best deal forever. On these occasions, my trusty utility cost framework often ends up taking a backseat to impulse. I start spending emotionally rather than intentionally. Once I realised this, I stopped tuning in for the sake of my wallet. That's not to say livestream shopping is bad. In fact, I've found some great deals this way. But if continually exposing yourself to your weakness leads you to busting your budget more often than you'd like, it's time to re-evaluate that self-exposure. After a while, I started tuning back in to livestream shopping again – but only when I was sure I could remind myself that not every 'good deal' is good for me. Now, whenever I find myself gripped by the urge to grab yet another 'exclusive', 'limited time' offer, I ask myself: Was I already planning to buy that item before entering the livestream? If the answer is no, then chances are I don't actually need it. FINANCIAL PRUDENCE IS NOT DEPRIVATION Spending mindfully doesn't mean saying no to all big purchases. It means learning to say yes strategically to only what we really want or need. This is especially important today, when we are constantly bombarded by online content and messaging telling us what to buy, wear or experience. This can spell financial stress for us when it leads us to shell out for big-ticket items with little consideration . That's where a simple mental framework – like utility cost – can help. Being financially responsible isn't about being miserly. It's about making sure we feel good about the things we choose to splurge on, instead of wallowing in the guilt or regret of post-purchase remorse. At the end of the day, the goal shouldn't be just saving more and spending less. Instead, we should ask ourselves: What matters most to us?
CNA
11 hours ago
- CNA
Japan Hour - Gaia Series 93: Big Motor's struggle to rebuild
Once Japan's largest used car dealer, Big Motor confronts its tainted past as it rebrands under new ownership. But not everyone is convinced it has truly changed.
CNA
11 hours ago
- CNA
Gaia Series 92: Challenge with the power of rice!
A journey from fermentation to innovation, Japan's culinary ingenuity shines across continents. In a small Tokyo neighbourhood known for its charm and food culture, a bustling eatery in Jiyuugaoka serves a simple yet popular lunch: grilled chicken thigh with rice, miso soup, salad and sides. But the secret to this dish's widespread appeal is not the chicken itself. It is the seasoning shio-koji, a centuries-old fermented ingredient that is now aiming to make its mark on the global culinary stage. This week's episode explores how this traditional Japanese seasoning, made from just rice malt, salt and water, is being introduced to international markets, while also following a parallel effort to reimagine Japanese rice snacks for the Indian palate. The episode begins with a showcase of shio-koji's power through a beloved local dish. One diner, savouring the grilled chicken thigh, puts it plainly: 'It's delicious. The meat is tender. It's mild, with a lovely flavour.' All of this is credited to the special marinade. Shio-koji is valued for its ability to enhance umami and soften textures, qualities that have earned it a reputation as an 'ultimate all-purpose seasoning'. In response to declining domestic consumption of miso, Hanamaruki, a century-old miso maker headquartered in Ina City, Nagano Prefecture, has turned its attention to shio-koji. Eight years ago, it patented a liquid version of the seasoning, aiming to make it easier to use and market abroad. 'We make full use of koji's properties to set ourselves apart from other shops,' one representative explains, underscoring Hanamaruki's strategic pivot. Marketing director Nobuyuki Hirata is confident about the potential: 'I believe our shio-koji sales could surpass our miso sales someday. That's a very real possibility, in my opinion.' At the heart of this international expansion is its 46-year-old chef Ryusaku Akiyama, who once trained in a French restaurant but left the industry after feeling overwhelmed. 'They had high hopes for me and gave me lots of responsibilities, but I felt my skills just couldn't keep up.' Since joining Hanamaruki in 2015, he has blended culinary expertise with product advocacy, becoming the seasoning's unofficial ambassador. His assignment takes him to Milan, a global capital of cuisine. There, at the Michelin-starred Restaurant LoRo, Chef Pierantonio Rocchetti uses shio-koji in experimental dishes. He prepares raw beef topped with oyster and vegetable sauce, caviar and a broth of shio-koji and beef stock. Akiyama's verdict is immediate: 'Delicious! The shio-koji enhances the meat's flavour and makes it mellow.' Another dish, raw prawns marinated overnight in shio-koji and served atop cheese risotto, further illustrates the seasoning's effects. 'The prawn's aroma and texture have increased,' Rocchetti observes. 'There is no seasoning like this in Italy. I definitely want to use it.' Despite these endorsements, shio-koji remains unfamiliar to many outside Japan. Kohei Fujiwara, from the overseas sales division and based in Italy for the past year, notes the challenge: 'Because it's a new seasoning, we got the sense that people were hesitant to try it.' To combat this, Akiyama and Fujiwara demonstrate its versatility directly. At a business presentation, Akiyama grills supermarket cod marinated in liquid shio-koji to neutralise its strong smell. 'Liquid shio-koji should do a good job of suppressing the smell,' he says. The result impresses potential buyers: 'The smell was surprisingly completely gone. Only the umami remained in this delicious acqua pazza.' Sales manager Enrico Les adds, 'This can be a good friend for Italian cuisine. It can help Italian cooks, Italian chefs to improve their meals and plates.' While shio-koji aims to redefine seasoning in European kitchens, another story unfolds in India, where 29-year-old Kenta Nakatsuka of Kameda Seika is developing a new rice snack for local consumers. The company's signature product, Kaki no Tane, sold as Kari Kari in India, has failed to gain traction. 'Just because it sells well in Japan doesn't mean it'll succeed in India,' says Nakatsuka. The Indian market, dominated by namkeen, a savoury snack sold at half the price of Kari Kari, presents a formidable challenge. 'Unless we get our products onto kirana (small convenience stores) shelves like these, I don't think they'll ever reach a wide audience,' he says. Chairman and CEO Lekh Raj Juneja, originally from India and now a Japanese citizen, sees localisation as essential. 'We want to deliver it to all 1.4 billion people,' he declares. Nakatsuka sets out to develop an India-specific version of Salad Hope, a rice snack previously available only in Niigata Prefecture. Drawing inspiration from the wildly popular street snack pani puri, he begins experimenting with seasoning. 'It's a really complex flavour,' he says. He mixes cumin, coriander and mango powder in the factory's development room to replicate the familiar tang of pani puri. 'When in Rome, do as the Romans do,' he notes. It is not only the flavour he needs to perfect, but also the production process. Defect rates were initially too high, with crackers 'over puffing' due to inconsistent drying. After revising the drying method, the product finally achieves the required quality standard. Reflecting on the challenge, Nakatsuka, who once struggled with poor health and self-discipline, sees his transformation as more than professional. 'I saw a lot of people living on the streets. But none of them seemed to have given up on tomorrow. That kind of energy really inspired me.' CEO Juneja visits the factory for a final tasting. The result is a success. 'It has a very distinct Indian flavour... really tasty. I love it. I used to get scolded by my mum for eating too much pani puri. To capture that same flavour is quite an achievement.' As Nakatsuka continues researching India's food scene for new ideas, he is more determined than ever. 'I want to create a hit rice snack that anyone can enjoy casually. So I'll keep working hard to make it happen.' This episode of Japan Hour presents two parallel journeys powered by rice. One exploring how a fermented seasoning can transform global cuisine, the other seeking to adapt a Japanese snack for one of the world's most dynamic markets. In both stories, innovation and persistence guide the way forward.
