Japan flash PMIs for June 2023 are here.
The ‘final’ for the month confirms the flash reading of a slide back into contraction in June. The contraction for Japan’s factory activity in June came after the PMI showed it expanding for the first time in 7 months in May.
Comments from the Markit report:
- Both new orders and production levels, which make up 55% of the headline PMI figure, fell back into contraction territory.
- Weak demand for goods, especially semiconductors, alongside labour suitability issues weighed on sales and output volumes.
- The weakened demand and output conditions had a two-fold benefit in the latest data. Pressure on supply chains eased further in June, with average lead times shortening for the second successive month. Though marginal, the degree to which delivery times quickened was the best in over seven years. This also helped ease inflationary pressures, pushing the Input Prices Index to a 28-month low. That said, prices remained historically elevated, with many panel members citing high raw material, energy and labour costs as key drivers behind sustained increases in average operating expenses.
Also published were manufacturing PMIs from:
- Taiwan: 44.8 (prior 44.3)
- South Korea 47.8 (prior 48.4)