Japan Mar manufacturing PMI rises to 48.2 as output falls at slower rates

SINGAPORE (ICIS)–Japan’s manufacturing purchasing managers’ index (PMI) rose to 48.2 in March from 47.2 in February after output and new orders scaled back at a slower pace, au Jibun Bank data showed on Monday.

A PMI reading above 50 indicates expansion while a lower number denotes contraction.

“Firms continued to associate the declines to weak customer demand in domestic and external markets, which meant firms adjusted production accordingly,” it said in a statement.

Contributing to the sub-50.0 PMI reading was a further contraction in output levels in March, though the rate of decline eased from that seen in February.

The downturn reflected production adjustments in response to weaker demand.

There was also a sustained contraction in new orders at the end of
the first quarter.

The rate of decline eased from February, and was the softest for five months, though it remained solid overall.

On the prices front, input cost pressures continued to ease in the latest survey period

Input prices rose at a strong rate that was nonetheless the softest since February 2021, and in line with the long-run average.

“Business sentiment remained elevated in March and was marked overall. Firms centred hopes on a broad domestic and global demand recovery, which would in turn stimulate sales and new products,” au Jibun Bank added.