Japan’s March factory activity grows at faster pace on demand recovery: PMI By Reuters

Spread the love
© Reuters. An engineer makes an arm rail for residential buildings inside a metal processing factory at an industrial zone in downtown Tokyo

TOKYO (Reuters) – Japan’s factory activity expanded at a faster pace in March, as an uptick in orders pushed up output levels, with firms seeing demand recover further from the pain of the coronavirus pandemic at home and abroad.

The private-sector survey likely offers some relief to Prime Minister Yoshihide Suga’s government, as policymakers face pressure to speed up a patchy economic recovery that is expected to stall in the first quarter.

The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 52.7 in March from the previous month’s 51.4 reading.

The rise in the headline figure, which was stronger than a preliminary 52.0 reading, marked the fastest expansion in manufacturers’ activity since October 2018.

Output levels rose for the second straight month, with firms reporting that overseas and domestic demand continued to recover as the impact of the health crisis began to dissipate.

But new overseas orders expanded at a slower pace than in February, with firms reporting that external demand strength was centred on Asian economies such as China and South Korea.

“Japanese manufacturers were confident that output would continue to rise over the coming 12 months,” said Usamah Bhatti, economist at IHS Markit, which compiles the survey.

“Firms cited hopes that a successful vaccination rollout which began in March would help to bring a quicker end to the pandemic and allow for a broad-based recovery in demand.”

The survey also showed that producers are facing a jump in input prices, which expanded at their fastest pace since late 2018, mainly due to higher raw material costs.

Manufacturers partly passed on those increased input costs to their customers, the survey said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Registered For FREE Forex Training!

Fill In Your Details To Get Registered For FREE Forex Training!