TOKYO, April 1 Reuters Japan39;s factory activity in March contracted for the 10th consecutive month though the downturn was the least pronounced in four months, helped by softer contractions in output and orders, a privatesector survey showed on Monday.

The final au Jibun Bank Japan manufacturing purchasing managers39; index PMI was at 48.2 in March, the highest level since November. That matched the flash reading and was better than February39;s 47.2, which marked the fastest pace of contraction in over 312 years.

The index has remained below the 50.0 threshold that separates expansion from contraction since last June, but conditions for manufacturers were starting to slowly turn up.

The performance of the Japanese manufacturing sector remained downbeat, though there were signs that the worst of the weakness had passed, said Usamah Bhatti at SP Global Market Intelligence, which compiled the survey.

Output and new orders the two main subindexes contributing to the headline figure declined yet again albeit at a slower pace than in February.

Global demand remained a major headwind, with new export orders declining at the fastest pace since February 2023, as business confidence soured in key markets including China and North America, according to the survey.

Delivery times continued to lengthen in March partly due to disruption in the Red Sea and Panama Canal, but the pace was the slowest in six months, the survey showed.

Input inflation was the slowest since…