Japan: February sees manufacturing PMI reach its highest point in 45 months

Stronger Recovery Observed in Japan's Manufacturing Sector

In February, Japanese manufacturers experienced a more robust rebound in business conditions, as increases in production, new orders, and employment all picked up pace compared to January. This healthier demand climate encouraged companies to adopt a more positive outlook for output over the coming year and spurred a notable uptick in purchasing activity. Nevertheless, data on prices indicated that inflationary pressures, while somewhat reduced since the beginning of the year, remained high. The main S&P Global Japan Manufacturing Purchasing Managers’ Index™ (PMI), which provides a comprehensive measure of manufacturing sector performance, reflected these trends.