(RTTNews) - The manufacturing sector in Japan continued to expand in August, albeit at a slower rate, the latest survey from Jibun Bank showed on Tuesday with a manufacturing PMI score of 51.0.
That's down from 52.1 in July, although it remains above the boom-or-bust line of 50.
Manufacturers reported a second successive contraction in output levels, and one that was the steepest for 11 months, while new order growth fell at the sharpest pace since September 2020. Concurrently, the rate of job creation broadly stagnated in August amid a renewed reduction in backlogs. Sustained shortages of inputs contributed to a further marked, albeit softer rise in input prices, while business confidence softened to a three-month low.
The survey also showed that the services PMI fell into contraction, slipping to a score of 49.2 in August from 50.3 in July. The composite index also slumped to 48.9 from 50.6 a month earlier.
Overall new business fell for the first time in four months amid weaker domestic demand, while new export orders broadly stabilized in the latest survey period. Service providers recorded a softening of input price inflation for the second month in a row, with the latest rise the slowest since April. That said, the rate of charge inflation edged up slightly since July.
