The manufacturing sector in Japan continued to expand in January, and at a faster rate, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 54.6.
That's up from 54.3 in December, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Both output and new order growth quickened, with the latter rising at the fastest pace for nine months. Manufacturers remained confident regarding the health of the sector and continued to take on additional staff, as indicated by a further moderate increase in employment.
Though firms remained strongly optimistic regarding the 12-month outlook for output, positive sentiment dipped to a five-month low
The decline was the sharpest since the Delta-induced contraction in August and was attributed largely to the reintroduction of restrictions and concerns surrounding the spread of the Omicron variant. The survey also showed that the services PMI tumbled to 46.6 from 51.1 in December, while the composite PMI dropped to 48.8 from 51.9.
The level of new business received reduced at the quickest pace for five months. The rate of job shedding also quickened for the second month running to reach the fastest since May 2020. Firms remained confident that activity would increase over the next year, however the degree of optimism eased to the softest for 12 months.
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