Japan's manufacturing sector delivers strong quarterly performance in June

According to Golden Ten Data on July 1, S&P Global Economic Deputy Director Annabel Fiddes stated: The latest PMI survey shows that Japan's manufacturing sector experienced its strongest quarterly performance in over 12 years in June. Driven by a significant improvement in customer demand, factories continued to expand production levels at a steady pace. In addition, overall new business growth reached its fastest rate in nearly four and a half years, with strong demand for artificial intelligence-related technology and semiconductors. However, growth is still at least partly driven by corporate stockpiling amid the ongoing Middle East conflict. Notably, supplier performance deteriorated sharply again in June, affected by shipping delays and shortages among suppliers. As a result, inflationary pressures remain among the most severe since the survey began in 2001, with both input costs and sales prices rising rapidly again in June. Therefore, there is significant uncertainty as to whether this strong performance can continue into the second half of the year, as short-term stockpiling activity may quickly fade, especially as costs continue to rise and customer spending comes under greater pressure.