Japan Jibun Manufacturing PMI for May (final): 50.6 (prior 49.5)

Jibun / S&P Global final manufacturing PMI from Japan for May 2023 comes in at 50.6, much improved from April:

• preliminary was 50.8, prior 49.5
• 50.6 is the first move into expansion in 7 months

Good results from Japan.

From the report:

• The latest au Jibun Bank PMI survey highlights a decisive turnaround in manufacturing sector performance during May and brings to an end a six-month period of weakening business conditions.
• A recovery in economic conditions at home helped to lift client spending, which offset another month of subdued demand in key export markets. Moreover, the rebound in total new orders was achieved against a backdrop of customer destocking as global supply chains normalise and less cautious inventory strategies take hold.
• Supplier performance improved for the first time since January 2020, which helped to boost business confidence and bring down purchase price inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term across the Japanese manufacturing sector in May. The latest overall rise in input prices was the weakest for just over two years. Hopes of a reduced squeeze on operating margins, alongside rising confidence regarding the broader economic outlook, underpinned the strongest output growth expectations among manufacturing firms since the start of 2022.

USD/JPY dipped earlier but has rebounded:

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Flash readings here:

• Japan preliminary PMI for May: Manufacturing 50.8 (prior 49.5), Services 56.3 (prior 55.4)

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Out at the same time was the South Korea Nikkei Manufacturing PMI (May), at 48.4 for the 11th straight month in contraction.

• from 48.1 in April