Japanese manufacturing activity grows for the first time in 7 months

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Tribunnews reporter, Mikael Dafit Adi Prasetyo

AMPONTOONS.COM, TOKYO – Japanese manufacturing activity recorded an increase for the first time in seven months.

Japan’s manufacturing purchasing managers’ index (PMI) rose to a seasonally adjusted 50.8 in May 2023, from 49.5 last month, according to au Jibun Bank.

Production and new orders are also back in expansion territory for the first time since June of last year.

“Japan’s private sector economy is growing,” said Usamah Bhatti, an economist at S&P Global Market Intelligence.

“Service providers continued to report strong growth momentum with a new record increase in business activity, while manufacturers demonstrated improved operating conditions for the first time in seven months,” he added.

Meanwhile, activity in the service sector also expanded rapidly in May 2020, driven by the reopening of the domestic and international tourism sector after the Covid-19 pandemic.

Last week, Japan’s government released data showing an increase in international tourist arrivals that nearly reached 2 million last month.

“The services sector is also showing record expansion in other areas such as total new business, exports and exceptional business,” Bhatti said.

Read also: Manufacturing industry grows by 4.67%, Industry Minister Agus: the biggest contributor to economic growth

Japan’s flash au Jibun Bank composite PMI, which includes both manufacturing and services sector activity, stood at 54.9 in May 2023, the highest reading since October 2013.

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