Japan’s manufacturing sector is exhibiting signs of stabilization, as evidenced by the preliminary figures for April 2024. The au Jibun Bank Japan Manufacturing PMI rose to 49.9 from 48.2 in the previous month, indicating a near-stabilization in factory activity after eleven consecutive months of contraction. Both output and new orders declined at their slowest pace in ten months, and the decline in new export orders moderated. Meanwhile, Japan’s services sector is thriving, with the au Jibun Bank flash Japan Services PMI rising to 54.6 in April 2024. This marks the 20th consecutive month of growth in the service sector and the strongest pace of expansion since May 2023. New orders surged at their fastest pace in ten months, driven by an acceleration in overseas orders. The overall private sector activity, as measured by the au Jibun Bank Japan Composite PMI, also improved, rising to 52.6 in April 2024. This indicates the fourth straight month of growth and the strongest pace since August 2023. As the Bank of Japan’s policy decision approaches, investors eagerly anticipate the central bank’s next move. The Japanese stock market responded positively to the PMI data, with the Nikkei 225 rising for the second consecutive session. The US dollar to Japanese yen exchange rate (USD/JPY) remained stable at 154.748.
Japan Manufacturing Activity Nears Stability, Services Expand in April
