Japan PMI Manufacturing was finalized at 54.1 in March, up from February’s 52.7. Markit said there was renewed rise in output and stronger new order growth. But export orders had sharpest fall for 20 months. Stocks of raw materials had record rise amid higher prices and delays.
Usamah Bhatti, Economist at S&P Global, said:
“The Japanese manufacturing sector saw an improvement in operating conditions at the end of the first quarter of 2022… new order inflows saw a quickening in growth… international markets were subdued, following the reintroduction of strict restrictions across parts of China and the outbreak of war between Russia and Ukraine. As a result, new export orders fell at the sharpest rate since July 2020….
“Beyond the immediate future, firms remained confident about the year-ahead outlook for output, though the downside risks led to the softest degree of optimism for seven months. This is in line with current estimates for industrial production to rise 3.7% in 2022, meaning that output lost to the pandemic is unlikely to be recovered until 2023.”
