Japan PMI February 2021


Japan: Manufacturing and services PMIs diverge in February

February 19, 2021

The Jibun Bank Composite Purchasing Managers’ Index (PMI)—which combines the PMIs of the services and manufacturing sectors—rose to 47.6 in February according to a flash reading, up slightly from January’s final figure of 47.1. As such, the reading remained below the 50-threshold, and therefore indicated the 13th consecutive month of worsening operating conditions.

The services PMI dropped to 45.8 in February from 46.1 in January, with new business deteriorating at the fastest pace in nine months. On the manufacturing side, the PMI rose to 50.6 in February from January’s 49.8 reading, thus marking the highest print since December 2018 as output and new orders expanded and sentiment improved among Japanese manufacturers.

Commenting on the uptick in manufacturing sentiment, Usamah Bhatti, an economist at IHS Markit, reflected:

“Businesses were optimistic that business conditions would improve in the coming 12 months. Positive sentiment stemmed from hopes that an end to the coronavirus disease 2019 (Covid-19) pandemic would induce a recovery in domestic and foreign demand. Nonetheless, disruption caused by the pandemic is likely to remain in the immediate future.”

FocusEconomics Consensus Forecast panelists project private non-residential investment to rise 0.6% in 2021, which is down 0.2 percentage points over last month’s projection, and grow 4.1% in 2022.

Author:, Economist

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Japan PMI Chart

Japan PMI February 2021

Note: Jibun Bank Composite, Manufacturing and Services Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit and Jibun Bank.

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