TOKYO, March 1 (Reuters) – Japan’s manufacturing activity growth slowed down to a five month low in February. The Omicron coronavirus variant pandemic, and the shortage of raw materials, caused a slowdown that affected firms’ output. These factors were even more severe than the impact of Russia’s invasion.

This slowing growth of manufacturing highlights the uncertainty faced by the sector and wider economy as a consequence of higher energy prices, supply bottlenecks, geopolitical tensions in Russia, and high energy prices.

Seasonally adjusted, the February au Jibun Bank Japan Manufacturing Purchasing Managers’ Index fell to 52.7.

It was lower than a flash 52.9 estimate and the month before’s final 55.4 and represented the slowest increase since September’s 51.5 reading.

On a monthly basis, the 50-mark distinguishes between contraction and expansion.

According to Usamah Bhatti (economist at IHS Markit), “Important supply chain disruptions which have dampened output and demande in the most recent survey period were attributed to severe material shortages, delivery delays” and other factors.

The survey revealed that manufacturers saw their input prices rise for the 21st consecutive month because of rising materials prices. It was due to fuel costs and higher electronics prices.

Bhatti said that input price pressures increased further and average costs burdens rose at their fastest rate in the past thirteen-and a half years.

He added that the “Firms have doubled down their efforts to safeguard against future disruptions, price pressures, and by increasing safety stocks of raw material and other inputs at a fastest pace in history of the survey”.

A Reuters poll on Monday showed that Japan’s economy will grow by 0.4% annually in the current quarter, as supply and pandemic bottlenecks hinder a more robust economic recovery.