The au Jibun Bank Japan Manufacturing PMI increased to 53.2 in March 2022 from a final 52.7 which was the lowest print since last September, flash data showed. The improvement came on the back of the lifting of the quasi-state of emergency as COVID-19 infections fell across Japan. Output returned to expansion territory, albeit only marginally; while buying activity growth accelerated. That said, new order growth was at six month-low; while new export orders fell further linked to heightening uncertainties, including from the war in Ukraine.
Meantime, the rate of job creation slowed, with the rate of backlog accumulation softening. Supplier delivery times lengthened the most since April 2011, attributed to material shortages, notably semiconductors. On the price side, input price inflation hit its highest since August 2008, due to higher energy, and oil and semiconductor prices. As a result, output price inflation quickened. Finally, confidence eased but stayed positive.