Japan's manufacturing sector returns to growth after 11-month slump

According to a private-sector survey, Japan's manufacturing activity saw an uptick in June for the first time in nearly a year, but it's still not clear what's going to happen with demand. There are worries about the new tariffs the US is enacting, and how fast the global economy is recovering.

The industry’s upturn was accompanied by faster growth in Japan’s services sector, driving overall business activity to a four-month high. However, economists warn that further gains may be limited, as the chances to reach a prompt trade agreement between Washington and Tokyo are really low.

The report said the Jibun Bank Japan Manufacturing PMI rose from 49.4 in May to 50.4 in June, ending an 11-month period of contraction. Despite this improvement, new orders, including those from foreign buyers, continued to decline, reflecting the impact of US import duties and ongoing uncertainty in global trade.