April's survey of Japanese manufacturers indicated a further improvement in business conditions, as output, new orders and employment all continued to rise. Export sales strengthened amid reports of higher demand, while purchasing activity was raised to the greatest degree since the start of 2016.

Subsequent pressure on suppliers meant that delivery times lengthened markedly, exacerbated by stock shortages at vendors. Prices for inputs rose sharply and output charges were raised to the greatest degree for nearly two-and-a-half years.

The headline Japan Manufacturing Purchasing Managers' Index - a composite singlefigure indicator of manufacturing performance - edged higher to a level of 52.7 during April (from 52.4 in March). Posting above the 50.0 no-change mark for an eighth successive month, the index was at a level amongst the best seen in the past three years.