The preliminary figures for the Manufacturing Purchasing Managers' Index (PMI) for July released by au Jibun Bank on the 22nd of July were 52.2, a slight decrease from 52.7 last month. On the other hand, the service industry PMI was 51.2. Rising raw material costs and energy prices in both the manufacturing and service industries are factors that restrain business sentiment.
Although the manufacturing PMI declined, the 50, which is the dividing line for economic judgment, has surpassed for 18 consecutive months.
New orders fell below 50 for the first time in 10 months and production fell below 50 for the first time in 5 months. In addition to the shortage of raw materials, rising energy prices and labor costs are putting pressure on them. On the other hand, some companies have pointed out that the disruption in the supply chain has been eased.
Service industry PMI fell from 54.0 in June due to rising labor costs and raw material costs. There are also concerns about the impact of rising import prices due to the depreciation of the yen on the Japanese economy.
Economists at S & P Global, who have been commissioned to investigate, explained that business sentiment has been depressed amid growing concerns about inflationary pressures, partly due to a shortage of raw materials and the effects of prolonged conflicts between Russia and Ukraine.
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