Japan PMI Manufacturing was finalized at 53.0 in May, down from April’s 53.6. That signaled a softer but still moderate improvement in the health of the sector. There were further expansions in output and new orders, and second successive rise in employment levels. Positive sentiment remained elevated.
Usamah Bhatti, Economist at IHS Markit, said: “May data marked a sustained improvement in the health of the Japanese manufacturing sector, as the latest Manufacturing PMI painted a different picture to 12 months ago. A continued recovery from pandemic-related disruption has now extended to four months…. Japanese goods producers remained optimistic in the year ahead outlook for activity. Firms were hopeful that the pandemic would subside and induce a broad recovery in demand across the sector. IHS Markit estimates that industrial production will rise by 8.8% in 2021.”
