Japan Manufacturing PMI

Last Release

Jul 31, 2024

Actual

49.2

Units In

Points

Frequency

Monthly

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
56.2 Jan 2014	29.6 Feb 2009	50.11 Points	2008-2024	Markit Economics

The Jibun Bank Japan Manufacturing PMI® is compiled by IHS Markit from responses to monthly questionnaires sent to purchasing managers in a panel of around 400 manufacturers. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP. Survey responses indicate the direction of change compared to the previous month. A diffusion index is calculated for each survey variable. The index is the sum of the percentage of ‘higher’ responses and half the percentage of ‘unchanged’ responses. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%). For the PMI calculation the Suppliers’ Delivery Times Index is inverted so that it moves in a comparable direction to the other indices.

Latest Updates

The au Jibun Bank Japan Manufacturing PMI unexpectedly fell to 49.2 in July 2024 from 50.0 in the previous month, missing market forecasts of 50.5 while pointing to the first decline in factory activity since April, preliminary estimates showed. The latest figures also marked the fifth time of contraction in the manufacturing sector so far this year, amid a renewed reduction in output. At the same time, new orders shrank the most since February, foreign sales continued to fall, and buying levels decreased at a steeper rate. Meanwhile, employment increased further, with backlogs of work declining for the fourth straight month and at a stronger rate, reflecting spare capacity in manufacturing. Simultaneously, delivery time lengthened after shortening in June. On the price front, input cost inflation accelerated to the highest level since April 2023 but output cost inflation eased to a four-month low. Finally, business confidence weakened despite staying positive.