Japan January factory growth rate reaches high level for the first time in 4 years, but service contract-Flash PMI

Tokyo — Japan’s factory activity is at its fastest pace in January’s four years as production growth has recovered, despite persistent chip shortages, rising input prices and pressure from the coronavirus pandemic. I grew up in.

However, the surge in Omicron mutant coronavirus has hit the customer service business in the service industry, reducing activity across the private sector for the first time in four months.

au Jibun Bank’s Flash Japan Manufacturing Purchasing Managers Index (PMI) rose from its final of 54.3 last month to seasonally adjusted 54.6, marking the fastest pace of expansion since January 2018.

Manufacturers reported the fastest rise in production prices since July 2008, suggesting that companies are passing on increasingly higher input costs, which continued to rise rapidly.

Production and new order growth accelerated after the momentum of the previous month weakened slightly.

However, the record surge in new coronavirus infections and concerns about the Omicron variant in the reintroduction of COVID-19 curbs in parts of the country have severely impacted the activities of the service sector.

The PMI index of au Jibun Bank Flash Service plummeted from the final 52.1 in December to seasonally adjusted 46.6, shrinking at the fastest pace in five months.

According to a survey, turnover in this sector has skyrocketed for the second straight month, reaching its highest level since May 2020.

Usamah Bhatti, economist at IHS Markit, who summarized the study, said:

“The labor market has also reported turmoil and employment levels have fallen for the first time in a year.”

The au Jibun Bank Flash Japan Composite PMI, calculated using both the manufacturing and service industries, fell from 52.5 in the finals last month to 48.8.