🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Japan’s Factory PMI Expands as Virus Outbreak Weighs on Services

Published 23/04/2021, 01:40
© Reuters.

(Bloomberg) -- Japan’s manufacturing activity expanded for a third month in April while a contraction in the service sector continued amid a fresh wave of coronavirus infections.

The au Jibun Bank Japan’s purchasing managers index for manufacturing sector activity rose 0.6 point to 53.3, while its measure of service sector activity was unchanged at 48.3. Numbers above 50 indicate an expansion and those below 50 signal a contraction.

Factory activity has been supported by a recovery in exports to the U.S. and China, Japan’s most important trade partners. Service activity took a hit from ongoing restrictions on businesses as Japan struggles to contain the latest wave of virus infections, forcing the government to recommend reinstating a state of emergency in key economic hubs such as Tokyo and Osaka.

“The boost in private sector activity was led by the manufacturing sector, as the larger services sector saw business activity deteriorate,” said Usamah Bhatti, economist at IHS Markit, which compiles the survey. “There is concern the impact of the pandemic will be prolonged further.”

If tighter restrictions are imposed, the emergency will likely limit the economic rebound for the current quarter that is expected following a contraction in the first quarter. Prime Minister Yoshihide Suga has maintained the government’s stance that the Tokyo Olympics will start in July, as planned, despite the emergency.

©2021 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.