Japan – Nikkei / Markit Manufacturing PMI (March, final): 53.1 (prelim 53.2, Feb. 54.1)

Still in solid expansion at 53.1 in March but down slightly from the February result

• Down for the second month in a row

Some of the sub indexes:

New orders 53.1

New export orders 52.5

Joe Hayes, Economist at IHS Markit, which compiles the survey, said:

• “Latest survey data presented a second successive decline in the Manufacturing PMI for Japan. That said, the overall picture remains upbeat. The reading of 53.1 still indicates a fairly solid pace of improvement in business conditions. Moreover, the average across Q1 is consistent with a robust growth rate and bodes well for official data.
• On a further positive note, new orders have now expanded in each of the last 18 survey months. This sustained upturn in demand has appeared to impact supply chains, with delivery times slowing to the sharpest extent since the aftermath of the 2011 earthquake. This could create headwinds for the manufacturing economy if further capacity pressures begin to impact production capabilities.
• Meanwhile, survey data signalled the second fastest rate of output price inflation since October 2008, the sharpest being that seen in January. More aggressive pricing behaviour is an encouraging sign; however the uptick was spurred on primarily by intensified cost pressures, particularly from food and energy.”

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Earlier from Japan: