Companies face higher costs due to weak yen - economist (Il Sole 24 Ore Radiocor) - London, 01 Jul - In June, Japan's purchasing managers' index (PMI) for the manufacturing sector fell to 50.0 from 50.4 in May, according to data released by S&P Global and its partner au Jibun Bank.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

'Notably, the latest PMI data revealed the first rise in Japanese factory production for over a year, and a rebound in business confidence. Although employment continued to be impacted by retirements, there was another round of net job creation in June," said Pollyanna De Lima at S&P Global Market Intelligence.

'However, there were some concerning aspects in the latest figures, with companies grappling with heightened cost pressures as yen depreciation exacerbated the price of imported materials. Labour was another factor straining budgets. There was clear evidence that the sharp rise in overall purchasing prices was not caused by supply-chain issues, as delivery times in fact improved to the greatest extent in over 15 years.

'Manufacturers raised their selling prices at the strongest rate in over a year as a result, an unfavourable consequence given that both domestic and external demand remain weak.'.

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(RADIOCOR) 01-07-24 08:01:20 (0057) 5 NNNN