Japan Private Sector Growth Softens

(RTTNews) - Japan's private sector growth cooled in March as growth trajectories slowed across manufacturing and service sectors, flash survey results from S&P Global showed Tuesday.

The flash composite output index fell to 52.5 in March from a 33-month high of 53.9 in February.

The index has remained in the growth territory in each month for the past year but the latest score was the lowest since December.

Both the manufacturing and service sector activity increased at softer rates in March. The services Purchasing Managers' Index fell to 52.8 from 53.8 in the previous month. The factory PMI posted 51.4 in March, down from 53.0 in February.

The slowdown coincides with the recent outbreak of the war in the Middle East, which contributed to a sharp rise in input costs, S&P Global Market Intelligence Economics Associate Director Annabel Fiddes said.

Japanese firms registered weaker increases in new orders and employment, while confidence around the year-ahead slipped to the lowest for nearly a year amid concerns around the war in the Middle East.

Input prices increased the most in eleven months in March. Despite stronger cost pressures, composite output charges increased at the softest rate in three months.