The manufacturing sector in Japan continued to expand in June, albeit at a slower pace, the latest survey from Jibun Bank revealed on Wednesday with a manufacturing PMI score of 51.5.
That’s down from 53.0 in May, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
This was the weakest reading of the headline Index for four months. This came as output levels declined for the first time since January and at the quickest pace seen since November 2020, while growth in new orders softened to a marginal pace. Positively, job creation continued for the third consecutive month, with the rate of growth picking up slightly to reach the fastest since January 2020. Firms also remained confident that activity would increase over the next 12 months, however optimism dipped to a three-month low in June. The survey also showed that the services PMI rose to 47.2 from 45.7 in June and the composite index fell to 47.8 from 48.8 a month earlier.