Japanese manufacturing PMI shows growth slowed in June, price pressures remained elevated

The headline Japan Manufacturing Purchasing Managers’ Index (PMI) for June came-in at 52.4 compared to the previous month’s figure of 53.1. 

The details revealed that, “the manufacturers chose to increase their own prices, with the modest rate of inflation matching April’s near two-and-a-half year high”. 

Key points

• Sales to South East Asia support best gain in new exports since February
• PMI pulled lower by weaker rises in both output and new orders
• Increased global demand places pressure on supply chains for Japanese manufacturers