The manufacturing sector in Japan continued to expand in February, and at a faster pace, the latest survey from Jibun Bank revealed on Friday with a manufacturing PMI score of 52.8.
That's up from 51.5 in January and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
This was supported by a stronger uplift in overall sales, which also rose to the greatest extent since May 2023, alongside another solid increase in employment. Companies also expressed greater optimism regarding future output, with sentiment hitting a 15-month high. On the prices front, both input costs and selling prices increased at slightly sharper rates.
The survey also showed that the services PMI ticked up to 53.8 from 53.7 and the composite PMI climbed to 53.8 from 53.1.
A solid and accelerated rise in composite new business was also observed in February. In line with the trend for business activity, the rate of growth was the quickest since May 2023. While new orders expanded at the fastest rate in 22 months at service providers, manufacturers recorded the steepest increase in sales since the start of 2022, with businesses often noting firmer underlying demand conditions and the positive impact of new product releases.