Japan Factory Activity Slows in March as Costs Rise
Japan's factory growth slowed in March as the PMI fell to 51.6. Higher energy costs from the Middle East conflict pushed input prices to a 19-month high.
Manufacturing activity in Japan expanded at a more moderate pace in March as growth in output and new orders cooled. The final manufacturing Purchasing Managers Index (PMI) from S&P Global Inc. declined to 51.6 from a 45-month high of 53.0 recorded in February. While the figure remains above the 50.0 threshold that separates expansion from contraction, it reflects a softening of the industrial momentum seen earlier in the year.
Factory output and new orders both increased for the third consecutive month, though the rate of expansion slowed compared to February. Despite the domestic cooling, international demand showed resilience. Manufacturers noted stronger demand across various regions, including Asia, Europe, and the United States.
