Japan’s factory activity accelerates; virus measures weigh

Japan’s factory activity saw an expansion in April, growing at the fastest pace in more than three years. This came even after the possible reimplementation of coronavirus measures dampened the outlook for the world’s third-largest economy.

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index was seen at 53.3 in April. The seasonally adjusted reading placed larger than the 52.7 record seen the previous month. The figure also came as the biggest jump since April 2018, securing its place above the 50 threshold that separates growth from decline.

The expansion was mainly from an increase in orders from overseas and at home. While the manufacturing sector staged a strong performance, the coronavirus heavily weighed on employment and output prices.