Oil prices rise after EU agrees Russian sanctions
Investing.com-- Japanese manufacturing activity rose more than expected in June and was back in expansion territory, purchasing managers index data showed on Monday.
The au Jibun manufacturing PMI rose 50.4 in the first three weeks of June, more than expectations of 49.5 and also picking up sharply from the 49.4 seen in May.
A reading above 50 indicates growth, with the manufacturing PMI now on track to log its first positive month since May 2024.
Au Jibun analysts said the positive print was driven by renewed increases in output and inventory, although overall demand still remained muted.
Still, Monday’s data showed that Japan’s major manufacturers saw some recovery in new orders despite the impact of steep U.S. trade tariffs, which had been a major pressure point on automakers in the past two months.
Japan’s services sector continued to grow, with the au Jibun services PMI up 51.5 in June from 51.0 in the prior month. Japanese services demand has remained strong despite recent weakness in manufacturing, with local demand especially underpinned by a bumper wage hike earlier this year.
The positive PMIs saw the au Jibun flash composite output index– a gauge of overall business activity– rise to 51.4 in June from 50.2 in May.