Japan’s au Jibun Bank flash June manufacturing PMI eases to 52.7

SINGAPORE (ICIS)–au Jibun Bank’s flash manufacturing purchasing managers’ index (PMI) for Japan slipped to 52.7 in June from 53.3 in May, as output slowed due to weaker demand from China, the Japanese bank said on Thursday.

A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction.

Output at Japan’s factories in June rose at the slowest rate over the last four months while new orders contracted for the first time in nine months, it said in a statement.

“Panel members associated weaker demand to the impact of COVID-19 restrictions in mainland China, which placed additional pressure on supply chains,” au Jibun Bank said.

“A further marked lengthening of delivery times exacerbated material shortages and contributed to a sustained, rapid rise in cost burdens that were increasingly passed to clients through a record increase in factory gate prices,” it added.