Japan’s manufacturing industries grew in May

Japan’s manufacturing activity grew in May for the first time in seven months, while the service sector experienced record growth.

The adjusted manufacturing sector purchasing managers’ index in the light of the seasonal factors of O’Gibbon rose to 50.8 in May, compared to 49.5 in the April final reading.

This is the first time that the index reading has exceeded the threshold of 50, separating contraction from growth, since October.

New orders and production also returned to growth for the first time since June.

Participants noted that supply chain disruptions caused by the COVID-19 pandemic and damaging the sector are seeing “signs of improvement.”

The survey also showed that Japan’s service sector activity grew at the strongest pace on record in May, supported by the resumption of domestic and international tourism and the continued recovery from the disruptions caused by the COVID-18 pandemic.

The services sector index increased to a seasonally adjusted record level of 56.3 in May from 55.4 in the previous month.