Japan’s PMI Manufacturing was finalized at 49.6 in April, marking an increase from March’s 48.2 and reaching its highest level in eight months. While the index remains below the pivotal 50.0 mark, which distinguishes expansion from contraction, the latest data suggests that the sector is moving towards stabilization in the near term.
Paul Smith from S&P Global Market Intelligence noted that the April PMI “continued to paint a fairly subdued picture of the Japanese manufacturing sector,” but also pointed out that “another rise in the headline PMI points to a sector heading towards at least stabilization in the near-term.”
The report also highlighted concerns about inflation, with a broad-based increase in input prices contributing to heightened cost pressures for manufacturers. Notably, the strength of market demand is allowing firms to pass these increased costs onto consumers, with the extent of charge hikes reaching the steepest level in nearly a year.
