Japan's manufacturing activity expanded at its strongest pace in four years in April. Firms boosted production amid concerns about potential supply shortages due to rising tensions in the Middle East.
The S&P Global flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to 54.9 in April, the highest since January 2022, surpassing the 50-mark threshold indicating growth.
Factory output recorded its strongest increase since February 2014, fueled by worries over future supply chain disruptions linked to escalating Middle East tensions.
Service sector activity slowed, with the services PMI falling to 51.2 in April, the slowest rise in 11 months. Price pressures intensified across Japan's private sector, with input costs and output charges rising at their fastest rates in over a year and since late 2007, respectively.
Business confidence weakened for a second consecutive month, reaching its lowest point since August 2020. The composite PMI, combining manufacturing and services, slipped to 52.4 in April.