Japan's May factory activity contracts for 11th month, PMI shows
Posted on: May 22, 2025 06:03 IST | Posted by: Hindustantimes
yeddo, - Japan's manufacturing activity extended declines for nearly a yr in May, as factories continued to occupy a strike from U.S. Tariffs on nipponese goods, a business survey showed on Thursday.
While service-sector activity showed some resilience and stayed in expansionary territory, feeble manufacturing performance drove overall Japanese businesses back to contraction.
Japan's trade envoy is set to have a third round of talks with U.S. Officials this week, but it was unclear if there would be a deal to lower the tariffs set by President Donald Trump, which threaten the auto sector and other key industries.
The au Jibun Bank flash Japan manufacturing purchasing managers' index edged up to 49.0 in May from April's final reading 48.7, but stayed below the 50.0 threshold that separates growth from contraction for the 11th month.
Factory output fell at a quicker pace than in April, while the decreases in new orders and new export business were slower than the previous month.
Cost pressures remained high but showed signs of easing. Input costs for factories rose at the slowest rate in 14 months, while output price inflation was down to the lowest in nearly four years.
Business confidence among manufacturers improved slightly in May after slipping to the weakest level in nearly five years in April. Meanwhile, service-sector managers' sentiment hit the lowest since January 2021 during the COVID-19 pandemic.
"Uncertainty around the future trade environment and foreign demand" appear to cloud Japanese businesses' outlook and output projections, said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey.
The au Jibun Bank flash services PMI was down to 50.8 in May from 52.4 in April, with slower increases in new business, export business and employment.
Given the deterioration in both manufacturing and non-manufacturing activities, the au Jibun Bank flash Japan composite PMI fell to 49.8 in May from 51.2 in April.
This article was generated from an automated news agency feed without modifications to text.
Global News Perspectives
In today's interconnected world, staying informed about global events is more important than ever. ZisNews provides news coverage from multiple countries, allowing you to compare how different regions report on the same stories. This unique approach helps you gain a broader and more balanced understanding of international affairs. Whether it's politics, business, technology, or cultural trends, ZisNews ensures that you get a well-rounded perspective rather than a one-sided view. Expand your knowledge and see how global narratives unfold from different angles.
Customizable News Feed
At ZisNews, we understand that not every news story interests everyone. That's why we offer a customizable news feed, allowing you to control what you see. By adding keywords, you can filter out unwanted news, blocking articles that contain specific words in their titles or descriptions. This feature enables you to create a personalized experience where you only receive content that aligns with your interests. Register today to take full advantage of this functionality and enjoy a distraction-free news feed.
Like or Comment on News
Stay engaged with the news by interacting with stories that matter to you. Like or dislike articles based on your opinion, and share your thoughts in the comments section. Join discussions, see what others are saying, and be a part of an informed community that values meaningful conversations.
Download the Android App
For a seamless news experience, download the ZisNews Android app. Get instant notifications based on your selected categories and stay updated on breaking news. The app also allows you to block unwanted news, ensuring that you only receive content that aligns with your preferences. Stay connected anytime, anywhere.
Diverse News Categories
With ZisNews, you can explore a wide range of topics, ensuring that you never miss important developments. From Technology and Science to Sports, Politics, and Entertainment, we bring you the latest updates from the world's most trusted sources. Whether you are interested in groundbreaking scientific discoveries, tech innovations, or major sports events, our platform keeps you updated in real-time. Our carefully curated news selection helps you stay ahead, providing accurate and relevant stories tailored to diverse interests.
No comments yet.