Japan’s April factory activity grows at slower rate: Flash PMI

JAPAN'S manufacturing activity grew at a slower rate in April, but the sector showed resilience in the face of uncertainty posed by Russia’s war in Ukraine and strict Chinese lockdown measures that are upending supply chains. Activity in the services sector posted its first expansion in four months, supported by the end to coronavirus curbs in March in the world’s third-largest economy following a decline in Omicron infections. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 53.4 in April from a final 54.1 in March. The 50-mark separates contraction from expansion. The headline figure was pulled down by a weaker expansion of output and overall new orders. New export orders shrank for the second straight month, suggesting firms were battling the hit to overseas demand from the pandemic’s fallout in China. Usamah Bhatti, economist at S&P Global, which compiles the survey, said that both manufacturers and service-sector firms faced cost pressures, as high prices of commodities and raw materials remained a feature of the global economy. “Cost pressures were sustained and remained more acute at manufacturers,” he added. The PMI data showed manufacturers passed the price rises on to customers at the fastest rate on record. “The rate of input cost inflation at service providers accelerated to the highest since August 2008 on the month and pushed composite input cost inflation up for the third month running,” Bhatti said. The au Jibun Bank Flash Services PMI Index rose to a seasonally adjusted 50.5 in April from a final 49.4 in the previous month. The au Jibun Bank Flash Japan Composite PMI, which is calculated by using both manufacturing and services, grew for the second straight month, posting a modest rise to 50.9 from a final of 50.3 in March. REUTERS