Tokyo — Japan’s manufacturing activity expands at the slowest pace in the five months of February as production declines, with the long-term impact of global supply chain disruptions on the world’s third-largest economy. Was emphasized.
Since May 2020, service sector activity has shrunk at the fastest pace as demand has weakened after coronavirus infections surged at record speeds with Omicron variants.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers Index (PMI) fell from the final 55.4 of the previous month to seasonally adjusted 52.9. Reads less than 50 indicate a reduction from the previous month and an increase of more than 50.
Usamah Bhatti, economist at IHS Markit, who summarized the study, said:
According to the survey, material shortages worsened when delivery times were significantly longer, and input prices rose at the fastest rate since August 2008.
“Companies continued to report that rising fuel and metal input prices and material shortages, in particular, continued to curb activities in the private sector,” Bati said.
Manufacturers have confirmed that stockpiles of raw materials and other inputs have increased most rapidly since the survey began in October 2001.
According to the survey, both manufacturers and companies in the service sector are no longer optimistic about the business situation over the next 12 months.
au Jibun Bank’s flash service PMI index fell from a final of 47.6 last month to a seasonally adjusted 42.7.
The au Jibun Bank Flash Japan Composite PMI, calculated using both the manufacturing and service industries, fell from 49.9 in the January final to 44.6, the lowest level since 40.8 in June 2020.