SINGAPORE (ICIS)--au Jibun Bank’s flash manufacturing purchasing managers’ index (PMI) for Japan slipped to 49.7 in January from the final reading of 50.0 in December 2020 as output fell amid rising costs, the Japanese bank said on Friday.
A PMI reading below 50 indicates a contraction in the manufacturing economy.
"Despite a return to growth in new orders for the first time since December 2018, falling output and employment levels and rising cost pressures dampened operating conditions," au Jibun Bank said.
Business expectations softened to the weakest since June last year, although the manufacturing sector remained strong overall, it added.
The Japanese government earlier this month declared a state of emergency in Tokyo, Osaka, Kyoto, Hyogo, Aichi, Gifu, Fukuoka and Tochigi to curb rising coronavirus infection rates in the country.
Interactive by Nurluqman Suratman