INSUBCONTINENT EXCLUSIVE:
Global and Jibun Bank.The Composite PMI rose to 52.0, up from 51.1 in January, marking continued growth above the neutral threshold of 50
While the services sector drove this expansion, manufacturing remained in contraction, highlighting a deepening divergence between the two
sectors.The services PMI climbed to 53.7 in February, its highest level in five months, supported by strong domestic demand and rising
Service providers reported steady job creation for the 17th consecutive month, enabling them to manage workloads effectively.However,
inflationary pressures persisted, with input costs remaining elevated due to higher wages and material prices
consecutive month.Factory output continued to decline, albeit at a slower pace, as new orders shrank further
Weak foreign demand from key markets like the U.S
(Photo Internet reproduction)Input price inflation accelerated due to unfavorable exchange rates, forcing firms to raise selling prices
Despite the overall growth in private sector activity, business sentiment deteriorated significantly.Confidence among Japanese firms fell to
its lowest level since January 2021
Companies cited labor shortages, persistent inflation, and concerns over U.S
Elevated inflation remains a common issue across sectors
Service providers are experiencing intensified cost pressures, while manufacturers are grappling with rising production costs and declining
exports.The weak yen has further complicated matters, contributing to higher import costs and squeezing profit margins
momentum.Policymakers may need to address structural issues such as labor shortages and inflation to ensure sustainable progress across all
