Japan Jibun Bank / Markit preliminary PMIs for June

Manufacturing dips back a little and still in expansion at 51.5

  • prior 53.0

Services inching higher and still showing contraction at 47.2

  • prior 46.5

Composite 47.8

  • prior 48.8

IHS Markit commentary on the data release (bolding is mine):

  • "Activity at Japanese private sector businesses remained in contraction territory at the end of the second quarter of 2021, as flash PMI data signalled a quicker deterioration in business activity.
  • New orders also reduced for the second successive month, and at the fastest pace since February.
  • Panel members commonly associated disruption to operating conditions to ongoing COVID-19 restrictions, coupled with severe supply chain pressures, notably for manufacturers.
  • "That said, one bright note was private sector firms in Japan continued to expand employment levels despite subdued demand conditions. Job creation occurred for the fifth time in as many months as manufacturing firms noted the fastest pace of job creation since January 2020.
  • "Despite the ongoing pandemic-related restrictions on the Japanese economy, private sector businesses were optimistic that business conditions would improve in the year ahead, and to a greater extent than that seen in May. Positive sentiment stemmed from expectations that the accelerating vaccination programme would contribute to an easing of restrictions and trigger a broad-based recovery in demand in both domestic and international markets."


Supply chain pressures are recurring themes across many anecdotes accompanying economic indicator releases, across many countries. Tightness getting product inputs is making producing products more difficult than normal, contributing to shorter supply and thus higher prices.