Japan’s au Jibun Bank Mar flash manufacturing PMI rises to 48.6

SINGAPORE (ICIS)–au Jibun Bank’s flash manufacturing purchasing managers’ index (PMI) for Japan rose to 48.6 in March from 47.7 in February as output and new orders contracted at a slower pace, the Japanese bank said on Friday.

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

“Both output and new orders were scaled back further in the latest survey period, although the respective rates of reduction were the softest for five months,” au Jibun Bank said in a statement.

Moreover, there was some evidence of easing cost pressures as seen by the rate of input price inflation dipping to the lowest since August 2021, it said.

Japanese manufacturers were also buoyed by improving supply chains with average lead times for inputs extending to the lowest extent for 29 months, the bank said.

“Concurrently, business sentiment strengthened at the end of the first quarter to reach the strongest since last October,” it added.