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There were renewed increases in both output and new orders, with both variables rising at the strongest rate for 13 months. Moreover, manufacturers signalled that supply chain issues that had plagued the sector for the past three years had shown signs of improvement, as suppliers’ delivery times shortened for the first time since January 2020, albeit only fractionally.
There was also reduced, but still strong pressure on the price front during May. Average cost burdens rose at a strong pace, that was nonetheless the softest since February 2021 while output charges increased at the slowest pace for four months, as per the Au Jibun Bank Flash Japan Composite PMI report.
“The Japanese private sector economy continued on an upward trajectory, as signalled by a further expansion in May. The rate of growth quickened from April to reach the strongest since October 2013 and the second strongest in the survey history (since September 2007). Manufacturers indicated an improvement in operating conditions for the first time in seven months, with output and new orders returning to expansion territory for the first time since last June,” said Usamah Bhatt, economist at S&P Global Market Intelligence.
Fibre2Fashion News Desk (DP)