Japan – Jibun Bank/Markit Manufacturing PMI (final) for June
From the report:
- softer expansions in both production and new orders
- the headline Manufacturing PMI was at its lowest reading since February
- “Manufacturers continued to note concern regarding ongoing supply chain disruption, which has induced sharp rises in the price of raw materials amid severe shortages. Cost burdens faced by businesses rose at the sharpest pace since March 2011, which has partially translated to higher charges for clients to cover margins.
- “That said, Japanese manufacturers commented that the degree of optimism regarding the outlook for output over the coming 12 months strengthened in June. Confidence about the outlook reached the highest level since the series began in July 2012, as hopes of an end to the pandemic gathered pace. This is broadly in line with the IHS Markit forecast for industrial production to grow 8.8% in 2021, though this does not fully recoup losses from the pandemic.”
USD/JPY continues to trade in a very small range. It has traded above 111.16 to its highest since March of 2020.