TOKYO: Key gauges of Japan’s manufacturing and service activity improved in April to their highest levels in nearly a year even as the weaker yen intensified price pressure on companies, a sign that they are becoming more tolerant of inflation.
The au Jibun Bank purchasing managers’ composite index (PMI) gained to 52.6 in April, the strongest reading since last August, S&P Global reported yesterday.
The PMI readings for manufacturing and services gained respectively to 49.9 and 54.6, for their highest levels since last May. A reading above 50 indicates expansion.
That services continue to drive growth bodes well for the Bank of Japan (BoJ) as it watches out for more evidence that price growth is spreading widely across the economy without pushing activity into sharp decline. — Bloomberg