Japan data – August flash Manufacturing PMI 49.5 (prior 49.1) Services 54.0 (prior 53.7)

Jibun Bank S&P Global PMI Flash / Preliminary for August 2024 for Japan

Manufacturing PMI 49.5

• prior 49.1

Services 54.0

• prior 53.7

Composite 53.0

• prior 52.5

Commentary from the report, in summary:

• Business Activity: Continued solid expansion in Japanese private sector firms in August 2024.
• Growth Drivers: Services sector activity accelerated; manufacturing output returned to growth after a brief decline in July.
• Demand Trends: Divergence observed; solid rise in new business for services, but subdued demand in the goods-producing sector.
• Business Confidence: Optimism remained above average but eased to a 19-month low due to concerns over labor constraints and rising price pressures.
• Labor and Employment: Service sector faced labor constraints, leading to slower employment growth.
• Price Pressures: Selling price inflation dropped to its lowest since November 2023, despite rising input costs.
• Margin Pressures: Both manufacturers and service sector firms faced margin pressures as they partially absorbed price increases to stay competitive and support sales.

This article was written by Eamonn Sheridan at www.forexlive.com.