TOKYO, Reuters – Japan’s manufacturing activity grew slower than the previous month of April due to supply chain disruptions in China and tight Chinese coronavirus lockdowns affecting overseas demand.

The sector’s activity was supported by resilience in output and overall orders. This was despite producers becoming more cautious about persistent price pressures, Ukraine war and logistics logjams.

From the 54.1 final in March, the final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index fell to 53.5 (seasonally adjusted) April.

This was in good agreement with the flash reading of 53.4. This is the 50-mark that separates expansion from contraction.

“Latest PMI data pointed to a sustained expansion in the Japanese manufacturing sector at the start of the second quarter,” said Usamah Bhatti, economist at S&P Global (NYSE:), which compiles the survey.

According to the report, “The pace of growth declined from March because firms reported a slower growth rate in new orders as well as a generally unchanged growth in production.”

PMI’s survey revealed that input prices rose at their fastest pace since August 2008. It prompted manufacturers and retailers to hike selling prices at the fastest rates in survey history.

This resulted in firms’ optimism regarding conditions over the next 12 months falling to their lowest level since July 2020.

Bhatti explained that while they are still hopeful, Japanese manufacturers of Japanese goods were becoming increasingly concerned by the ongoing impact of price- and supply pressures as well as the effect of extended Chinese lockdowns.