TOKYO (CNA) – Japan’s manufacturing activity expanded for the first time in seven months in May, while the service-sector hit record growth, a survey showed yesterday as the post-COVID recovery shored up business conditions.
The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) rose to a seasonally adjusted 50.8 in May, from a final 49.5 in April.
It’s the PMI’s first reading above 50, which separates contraction from expansion, since October. Output and new orders also returned to expansion territory for the first time since last June.
Manufacturers in the survey suggested supply chain disruption brought by the pandemic which battered the sector showed “signs of improvement”.
“The Japanese private sector economy continued on an upward trajectory,” said economist at S&P Global Market Intelligence, which compiles the survey Usamah Bhatti.
“Service providers continued to report strong growth momentum with a renewed record increase in business activity, while manufacturers indicated an improvement in operating conditions for the first time in seven months,” he said.
Service-sector activity expanded at the strongest pace on record in May led by the restart of both domestic and international tourism and continued recovery from pandemic disruptions, the survey showed.
