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The
final au Jibun Bank Japan manufacturing purchasingmanagers'
index (PMI) rose to 49.6 in April from 48.2 in March, but was
off the 49.9 reported in the flash PMI.
The index still stayed below the 50.0 threshold that separates
growth from contraction in activity but it was the slowest
contraction in eight months.
"The latest PMI data continued to paint a fairly subdued picture
of Japanese manufacturing sector performance," said Paul Smith
at S&P Global Market Intelligence.
But a rise in the index suggested the sector is close to "stabilisation
in the near-term," he said.
Both output and new orders slipped for an 11th straight month in
April but the pace of falls eased.
Some firms reduced new orders, which weighed on production,
while others preferred utilising inventories rather than raising
output, the survey showed.
New orders shrank due to sluggish demand, especially for autos
while new export orders contracted due to low demand from key
export markets such as China and the U.S.
Input costs picked up as higher prices were seen in a variety of
goods, especially metals. Freight and logistics were cited as
factors for inflation as well. Stronger input prices were behind
the gains in output charges, the survey showed.
"Firms perceived that market demand was sufficiently strong to
allow them to raise their own charges," said Smith.
While the trend of a weak yen helps boost exports, it pushes up
import costs, which adds to inflationary pressures and squeezes
households spending.
Firms remained confident about the outlook as they expect sales
to pick up and the global inventory cycle to pick up.
(Reporting by Kaori Kaneko; Editing by Sam Holmes)
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