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 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:
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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