Updated
Updated · investinglive.com · Jun 23
Japan Composite PMI Hits 52.5 as Input Costs Climb to Near 4-Year High
Updated
Updated · investinglive.com · Jun 23

Japan Composite PMI Hits 52.5 as Input Costs Climb to Near 4-Year High

2 articles · Updated · investinglive.com · Jun 23

Summary

  • Japan’s flash composite PMI rose to 52.5 in June from 51.1, the strongest in three months, with manufacturing at 54.9 and services returning to growth at 51.8.
  • Input cost inflation accelerated for a fifth straight month to its sharpest since July 2022, as Middle East war-driven energy, fuel and raw material prices lifted costs across both sectors.
  • Manufacturing payrolls grew at the fastest pace in more than eight years, but S&P Global said part of the demand pickup reflected client stock-building ahead of further disruption and price rises.
  • That mix of firmer activity and hotter costs reinforces the BOJ’s recent rate hike to 1% and keeps further tightening in play, even as business confidence stays muted by inflation and supply-chain risks.

Insights

Is Japan's manufacturing boom a sign of strength or a reaction to global supply chain chaos?
Can Japan’s rate hikes curb war-driven inflation without derailing its economic expansion?
Will Japan's record wage hikes be enough to protect households from the cost-of-living crisis?