In April 2024, Japan saw a notable rise in its manufacturing PMI to 49.9, the highest since June 2023.
This increase reflects strong service sector performance, which scored a PMI of 54.6. As a result, Japan’s overall business activity improved, with a composite PMI of 52.6.
The Purchasing Managers’ Index (PMI) measures the economic health of the manufacturing and service sectors based on surveys of purchasing managers.
On the other hand, the UK’s industrial PMI dipped to 49.1 from 50.3, indicating some manufacturing slowdown.
Despite this, the UK’s composite PMI climbed to 54.0 due to a rebound in services.
Output and new orders fell back into contraction after brief gains in March, due to market uncertainty, client destocking, and supply disruptions.
This pattern shows a contrast between regional manufacturing challenges and global service sector resilience.
The decline in new export business reached 27 months, affecting Germany, Ireland, Asia, and the US. Employment also dropped for the 19th month.
On the price front, input price inflation accelerated to the highest since February 2023, and output charge inflation hit an 11-month high.
April’s outlook for the UK manufacturing sector was positive, fueled by hopes for increased demand, new products, efficiency improvements, and better market conditions.
The rise in Japan’s PMI since June 2023 highlights a steady recovery. Strong service sector results played a key role in this rebound.
Rising PMIs Indicate Diverse Economic Trends in Japan and the UK
Historically, Japan’s manufacturing has shown resilience, adapting quickly to global demands.
In the UK, the slight drop in manufacturing PMI suggests ongoing industry challenges. However, the service sector’s strong recovery helped lift the overall business climate.
This shows how services can buffer economic shifts. Globally, these trends underline the importance of diversified economies in navigating uncertain markets.
Both nations reflect a broader, interconnected economic landscape where sectoral shifts influence overall stability.