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Yomiuri Shimbun
a day ago
- Automotive
- Yomiuri Shimbun
Japan Factory Activity Grows for First Time in 13 Months, PMI Shows
TOKYO, July 1 (Reuters) – Japan's manufacturing sector expanded in June for the first time in 13 months led by an upswing in output, but overall demand remained weak as new orders shrank yet again amid uncertainty over U.S. tariffs, a private sector survey showed on Tuesday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) rose to 50.1 in June from 49.4 in May. That undershot the flash figure of 50.4, but managed to nudge above the 50.0 threshold that separates growth from contraction for the first time since May 2024. Among sub-indexes, factory output grew in June to end a nine-month contraction streak, with some respondents citing hopes of improvements in future demand. Others said the production uptick also reflected a need to reduce backlogs of work, according to the survey. The sub-index gauging manufacturers' future output expectations rose to a five-month high, while employment expanded in June for the seventh consecutive month. 'The latest PMI data signaled that demand conditions remained challenging for Japanese manufacturers in June, with firms recording further drops in sales both at home and overseas,' said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, which compiled the survey. 'However, companies were more hopeful when looking ahead, which encouraged them to increase their staff numbers and raise production levels for the first time in a year.' Fiddes said Japan will need to see sustained improvement in customer demand, which is being dampened by uncertainty over U.S. tariffs, for a more durable recovery in production. The uncertainty drove new orders down for the 25th consecutive month and at a faster pace compared with May. New export orders also extended their slump since February 2022. Some firms mentioned that the murky outlook for U.S. tariffs was hampering sales, particularly in the semiconductor and automotive sectors, the survey showed. The Japanese government is scrambling to obtain exemptions from the United States for the 25% car tariffs to protect the domestic auto industry, which is a backbone of Japan's export-reliant manufacturing sector and the broader economy. On inflation, the sub-indexes for input and output prices both rose from May, with firms citing higher costs for raw materials, labor and energy, according to the survey.
Business Times
2 days ago
- Business
- Business Times
Japan's factory activity grows for first time in 13 months: PMI
[TOKYO] Japan's manufacturing sector expanded in June for the first time in 13 months led by an upswing in output, but overall demand remained weak as new orders shrank yet again amid uncertainty over US tariffs, a private sector survey showed on Tuesday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) rose to 50.1 in June from 49.4 in May. That undershot the flash figure of 50.4, but managed to nudge above the 50.0 threshold that separates growth from contraction for the first time since May 2024. Among sub-indexes, factory output grew in June to end a nine-month contraction streak, with some respondents citing hopes of improvements in future demand. Others said the production uptick also reflected a need to reduce backlogs of work, according to the survey. The sub-index gauging manufacturers' future output expectations rose to a five-month high, while employment expanded in June for the seventh consecutive month. 'The latest PMI data signalled that demand conditions remained challenging for Japanese manufacturers in June, with firms recording further drops in sales both at home and overseas,' 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 'However, companies were more hopeful when looking ahead, which encouraged them to increase their staff numbers and raise production levels for the first time in a year.' Fiddes said Japan will need to see sustained improvement in customer demand, which is being dampened by uncertainty over US tariffs, for a more durable recovery in production. The uncertainty drove new orders down for the 25th consecutive month and at a faster pace compared with May. New export orders also extended their slump since February 2022. Some firms mentioned that the murky outlook for US tariffs was hampering sales, particularly in the semiconductor and automotive sectors, the survey showed. The Japanese government is scrambling to obtain exemptions from the United States for the 25 per cent car tariffs to protect the domestic auto industry, which is a backbone of Japan's export-reliant manufacturing sector and the broader economy. On inflation, the sub-indexes for input and output prices both rose from May, with firms citing higher costs for raw materials, labour and energy, according to the survey. REUTERS
Hindustan Times
2 days ago
- Automotive
- Hindustan Times
Japan factory activity grows for first time in 13 months, PMI shows
TOKYO, - Japan's manufacturing sector expanded in June for the first time in 13 months led by an upswing in output, but overall demand remained weak as new orders shrank yet again amid uncertainty over U.S. tariffs, a private sector survey showed on Tuesday. Japan factory activity grows for first time in 13 months, PMI shows The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index rose to 50.1 in June from 49.4 in May. That undershot the flash figure of 50.4, but managed to nudge above the 50.0 threshold that separates growth from contraction for the first time since May 2024. Among sub-indexes, factory output grew in June to end a nine-month contraction streak, with some respondents citing hopes of improvements in future demand. Others said the production uptick also reflected a need to reduce backlogs of work, according to the survey. The sub-index gauging manufacturers' future output expectations rose to a five-month high, while employment expanded in June for the seventh consecutive month. "The latest PMI data signalled that demand conditions remained challenging for Japanese manufacturers in June, with firms recording further drops in sales both at home and overseas," said Annabel Fiddes, economics associate director at S&P Global Market Intelligence, which compiled the survey. "However, companies were more hopeful when looking ahead, which encouraged them to increase their staff numbers and raise production levels for the first time in a year." Fiddes said Japan will need to see sustained improvement in customer demand, which is being dampened by uncertainty over U.S. tariffs, for a more durable recovery in production. The uncertainty drove new orders down for the 25th consecutive month and at a faster pace compared with May. New export orders also extended their slump since February 2022. Some firms mentioned that the murky outlook for U.S. tariffs was hampering sales, particularly in the semiconductor and automotive sectors, the survey showed. The Japanese government is scrambling to obtain exemptions from the United States for the 25% car tariffs to protect the domestic auto industry, which is a backbone of Japan's export-reliant manufacturing sector and the broader economy. On inflation, the sub-indexes for input and output prices both rose from May, with firms citing higher costs for raw materials, labour and energy, according to the survey. This article was generated from an automated news agency feed without modifications to text.
Yomiuri Shimbun
02-06-2025
- Business
- Yomiuri Shimbun
Japan Factory Declines Slow in May but Tariff Worries Persist, PMI Shows
Reuters A worker walks near a factory at the Keihin industrial zone in Kawasaki, Japan, March 8, 2017. TOKYO, June 2 (Reuters) – Japan's factory activity shrank at the slowest pace in five months in May as the decline in new orders eased, but worries over U.S. tariffs have dampened the recovery from an almost year-long contraction, a private-sector survey showed on Monday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) rose to 49.4 in May from 48.7 in April, marking the 11th consecutive month of staying below the 50.0-line that indicates contraction. Still, the reading was higher than the flash figure of 49.0 and the highest so far this year. 'Manufacturing conditions in Japan moved closer to stabilization in May, according to latest PMI data, with companies signaling a softer decline in sales and improved jobs growth,' said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. Among sub-indexes, new orders fell for the 24th straight month, with manufacturers citing U.S. tariffs and increased client hesitancy as factors behind subdued demand conditions. Factory output also contracted for a ninth consecutive month, at a quicker pace than in April, the survey showed. To mitigate the impact of the U.S. tariffs on cars and other manufacturing sectors, which are the backbone of the Japanese economy, Tokyo has held four rounds of trade talks with Washington and plans a fiscal package to support households and businesses. In a positive sign, input cost inflation eased to a 14-month low in May, while output price inflation slowed to the softest in nearly four years. Employment increased for the sixth month in a row as firms filled vacancies and prepared for anticipated production increases, according to the survey. Business confidence on future output strengthened from April's near five-year low, with firms citing expectations of stronger market demand particularly in the semiconductor industry. However, some expressed concerns over U.S. tariffs, inflation and Japan's declining population as potential headwinds to growth, the survey showed.
Yahoo
01-04-2025
- Business
- Yahoo
Japan's factory activity declines pick up, PMI shows
TOKYO (Reuters) - Japan's factory activity declines accelerated in March as demand weakened and the escalating U.S. trade war clouded the manufacturing outlook, a private-sector survey showed on Tuesday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) fell to 48.4 in March from 49.0 in February, hitting the lowest in 12 months. Although the final reading was slightly higher than the flash figure of 48.3, it also marked the ninth straight month below the 50.0 threshold that separates growth from contraction. "Indices for output and new orders fell further into contraction territory, as companies noted weaker demand from both domestic and international clients," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. Output declined for the seventh straight month and at the quickest pace in a year, while new orders contracted for a 22nd consecutive month. New export business also fell slightly, with manufacturers citing muted demand from key markets such as China and the United States, according to the survey. Companies' outlook for future demand improved from February, when it hit the lowest since 2020, but the recovery was slow, due in part to "greater uncertainty over the global economic outlook and trade environment," Fiddes said. U.S. President Donald Trump last week unveiled a 25% tariff on imported cars to take effect on April 3, in what could be a major blow to Japan's manufacturing sector and the broader economy. Meanwhile, employment emerged as a bright spot, with firms adding workers at the fastest pace in three months. Some companies said that they added to payrolls to fill in vacancies or in anticipation for greater demand ahead, according to the survey. Cost pressures remained high, with companies reporting sharp increases in expenses for labour, materials, energy and transport, exacerbated by an unfavourable exchange rate. "The latest survey showed historically strong increases in both input costs and selling prices in March, to suggest inflationary pressure across the sector remains acute," Fiddes added. Sign in to access your portfolio
