TOKYO, Oct 22 Reuters - Japan's factory activity growth in October picked up from the previous month, while the services sector expanded for the first time in 21 months after an easing of coronavirus pandemic restrictions at home.
Manufacturers struggled with supply chain disruptions and surging raw material demand that fuelled the sharpest rise in input prices in more than 13 years, as the health crisis continues to impact the global economy.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index PMI rose to a seasonally adjusted 53.0 in October from a final 51.5 in the previous month.
Key survey components showed output and new orders expanded thanks in part to stronger overseas demand.
noted an increase in aggregate new business for the first time since April, assisted by a faster rise in export orders, said Usamah Bhatti, economist at IHS Markit, which compiled the survey.
That said, firms continued to highlight sustained supply chain pressures and material shortages. The au Jibun Bank Flash Services PMI Index rose to a seasonally adjusted 50.7 from the final of 47.8 in the prior month.
That meant services sector activity stayed above the 50.0 threshold that separates contraction from expansion for the first time since January 2020, before the economy went through its deep COVID 19 slump. Panel members commonly associated the mild recovery to a reduction in COVID - 19 cases and looser pandemic restrictions, said Bhatti.
The au Jibun Bank Flash Japan Composite PMI, which is estimated by using both manufacturing and services, rose to 50.7 from September's final of 47.9, marking its highest since April.