Japan PMI May 2017


Japan: Manufacturing PMI falls to six-month low in May

May 24, 2017

The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) fell from April’s revised 52.7 (previously reported: 52.8) to 52.0 in May. Although the print marked a six-month low, the index remains above the 50-threshold that separates expansion from contraction in the manufacturing sector.

May’s result reflected that output and new orders expanded at a slower pace leading to weaker hiring activity. Growth in stocks of purchases also moderated in May. With input costs expanding at a softer rate, firms diminished the rate of prices charged to consumers. Paul Smith, Senior Economist at IHS Markit highlights that, “although growth is being maintained at a decent clip, reports of “wait-and-see” attitudes amongst clients, excess warehouse inventories and recent sharp rises in raw material costs all served to undermine expansion during the month.”

Author: Ricard Torné, Lead Economist

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Japan PMI Chart

Japan PMI May 2017

Note: Nikkei Manufacturing Purchasing Managers’ Index. Readings above 50 indicate an expansion in the manufacturing sector while readings below 50 indicate a contraction.
Source: IHS Markit and Nikkei.

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