Japan PMI Manufacturing rose to 51.4 in February, up from 49.8. That’s the strongest reading since December 2018, as manufacturers gradually recovered from the impact of the pandemic. Markit also noted that output and new orders expanded modestly. Input prices rose at fastest pace for two years. Positive sentiments reached strongest since July 2017.
Usamah Bhatti, Economist at IHS Markit, said: “Concern has been building throughout the Japanese manufacturing sector regarding ongoing supply chain disruption, which has induced sharp rises in the prices of raw materials. Cost burdens faced by firms rose at the sharpest pace in two years… Japanese manufacturers continued to report a positive outlook beyond the immediate future… in line with the IHS Markit forecast for industrial production to grow 7.4% in 2021, although this is from a low base.”
