Japan's factory growth slowed in March with PMI falling to 51.6 from February's 45-month high of 53.0. Output and orders expanded but at a slower pace due to elevated costs driven by the Middle East conflict. Input prices surged to a 19-month high, affecting hiring and leading to a buildup in work backlogs.
Employment growth slowed to a three-month low, despite ongoing recruitment to tackle labor shortages. Manufacturers’ confidence dipped but remains positive towards AI, semiconductor, and defense sectors.