Coronavirus | Japan's factory activity grows for the first time in seven months
Employees wearing protective face masks and face guards work at the automobile assembly line during the outbreak of coronavirus disease COVID - 19 at the Kawasaki factory of Mitsubishi Fuso Truck and Bus Corp. in Kawasaki, Japan.
Japan's factory activity expanded in August as a resurgence of coronavirus cases in Asia disrupted supply chains throughout the region, sinking overseas orders into contraction for the first time in seven months.
Manufacturers withstood the pandemic in part thanks to their positive outlook for the coming twelve months, even as the highly infectious COVID - 19 Delta variant pushes countries in Asia-Pacific back into lockdown mode.
The final Jibun Bank Japan Manufacturing Purchasing Managers' Index PMI eased to 52.7 on a seasonally adjusted basis from 53.0 in the previous month and slightly adjusted from a 52.4 flash reading in August.
A sharp rise in COVID-19 cases in SME countries was among the key factors listed by Japanese manufacturers for the easing of demand, said Usamah Bhatti, economist at IHS Markit, which compiled the survey.
Severe supply chain disruption remained a dampener on production and orders partly caused by pandemic restrictions and raw material shortages. Production saw a rise in annual output, but its pace from the prior month eased as the intensifying health crisis and a lack of raw materials weighed on production.
The survey also showed output for intermediate goods grew at their fastest pace in four-and-a-half years, offsetting weaker demand for investment and consumer products.
Input prices continued a sustained increase, while companies' expectations for the year ahead remained weak, though they eased into the softest since January.
Though still optimistic, Japanese goods producers were wary of the continued impact of the Pandemic and supply chain disruption, said Bhatti.