Japan Jibun Bank PMI Manufacturing March 2025 Preliminary: 48.3, falling at the quickest pace for a year.
- prior 49.0
Services: 49.5
- prior 53.7
Composite: 48.5
- prior 52.0
From the report:
- The March Flash PMI data indicated that Japanese firms had a
disappointing end to Q1, with private sector business activity falling for
the first time since last October. - slight drop in composite new business
-
firms noting that strong inflationary pressure had dampened sales and
made some customers hesitant to commit to orders - Growth of new
business slowed notably at services companies and fell solidly at goods
producers - New export orders increased slightly at the composite level,
however, as a strong rise at services companies offset a further drop in
foreign demand for manufactured goods - cost pressures remained elevated in
March, with overall input costs rising sharply across both monitored
sectors, leading to a solid rise in selling prices - overall
confidence regarding future business activity dipped to the lowest since
August 2020 at the end of the first quarter.”
—
This list of woes facing Japan include:
- inflation
- labour shortages
- ageing population
- subdued client spending
- increased uncertainty over the international trade environment
Data for Japan’s economy up to now has been, on balance, improving. PMIs are looked to as an (often) leading indicator, so this is not good news here today.
This article was written by Eamonn Sheridan at www.forexlive.com.
