Japan's manufacturing activity contracted for eleventh consecutive month in May

Manufacturing activity in Japan decreased again in May, marking almost a year of decline. Local factories continue to face pressure from US tariffs on Japanese imports. These results were revealed in a survey of industry representatives.

May's purchasing managers’ index (PMI) for Japan's manufacturing, calculated by the au Jibun bank, rose to 49.0 from April's value of 48.7. However, the index remained below the 50.0 threshold separating growth from contraction for the eleventh consecutive month.

Factory output fell faster than in April, while the decline in new orders and exports slowed compared to the previous month.

Japanese factory input costs increased at the slowest rate in 14 months, and output price inflation reached its minimum in almost four years. Business confidence among industry representatives improved slightly in May after reaching its lowest level in nearly five years in April.

According to analysts at S&P Global Market Intelligence, uncertainty regarding the future trading environment and external demand clouds the outlook for Japanese business.