Yokohama's industrial area is characterized by chimneys and cranes.
Japan's factory activity has surged for the first time in seven months thanks to increased output and new orders and buoyed by a positive outlook for the year ahead, according to a private sector survey.
The index of the Au Jibun Bank Japan manufacturing purchasing managers rose to 50.6, its first reading above the 50.0 threshold since October last year and marking the fastest rate of expansion in a year.
In 12 and 13 months, both production and new orders hit their highest levels, as business and consumer confidence lifted demand.
The rebound in total new orders were achieved against a backdrop of customer destocking as global supply chains normalise and less cautious inventory strategies take hold, said Tim Moore, economics director at S&P Global Market Intelligence.
The survey also said overstocked clients and lower export sales, especially toward China, dented growth in new orders.
The PMI reading comes after government data on Wednesday showed Japanese factory output unexpectedly fell in April. Although a survey of manufacturers predicted a 1.9% increase in May, an industry ministry official said that weak overseas demand could increase the risk of a downward adjustment in their plans.
Japan has so far steered away from the effects of deteriorating global economic conditions thanks to a revival in services sector activity, but signs of a slowdown in U.S. European and Chinese growth are weighing on the outlook for the export-reliant economy.
Average suppliers' delivery delays have improved for the first time since January 2020, with shorter lead times for electronic components.
In more than two years, the overall increase in input prices has been the weakest. The unemployment rate for the current 26 months of expansion was the slowest, according to the survey.