Japan's manufacturing sector expanded at a slower pace in May, as record export orders were offset by surging input costs due to the Middle East conflict.
The final S&P Global Japan Manufacturing PMI stood at 54.5, down from April's 55.1. New export orders grew at the fastest pace since May 2021, driven by demand from the U.S. and Asia. However, input costs surged the most since September 2022.
Business confidence improved from April's low, but concerns over rising costs and global economic conditions remain.
