Japan hits slowest manufacturing growth in 9 months
Japan’s manufacturing sector has seen it’s slowest month of growth since August 2017.
According to the Financial Times, the slowest growth for nine months has fallen amid a rise in input prices.
The month of May also saw a drop in new orders for the nation, which is anticipated to have contributed to the disappointing figures.
The Nikkei-Markit flash manufacturing purchasing managers’ index (PMI) recorded a growth of 52.5 on its scale for this month.
Japan sees manufacturing industry growth increase in April following three months of decline
Despite the figure remaining above the 50 points mark that separated contraction and growth, the number is short of April’s 53.8.
Japan’s input prices reached its highest level in over four years, since January 2014, whilst new order growth was at a nine month low.
“Supply-side constraints may be impacting output potential, as material shortages contributed to the greatest lengthening of delivery times in seven years,” stated Joe Hayes, Economist at IHS Markit, The Financial Times reported.
“Consequently, input prices soared at the fastest pace in 52 months.”
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