Japanese manufacturing exercise swung again into contraction in Might, a non-public survey confirmed on Monday, as exports from the world’s third-largest economic system continued their droop amid international commerce tensions.
The newest Nikkei-Markit PMI manufacturing buying managers’ index slipped to 49.eight through the month, in comparison with 50.2 in April. Any determine beneath 50 signifies that Japan’s manufacturing sector is shrinking.
The survey famous that manufacturing output in Japan fell for the fifth successive month on the again of slowing home and abroad demand, whereas new export orders fell for the sixth month in a row.
“Weak demand from Japan’s key commerce companion, China, in addition to indicators of an more and more sluggish home economic system, have impacted gross sales volumes,” mentioned Joe Hayes, economist at IHS Markit.
Japanese companies general have turned pessimistic on their prospects for the following 12 months for the primary time in six-and-a-half years amid heightened commerce tensions and the prospect of a gross sales tax hike later within the yr.
“Re-escalated commerce tensions between China and america merely add to present issues for producers,” Mr Hayes added.
Might’s PMI studying was a notch increased than the 49.6 earlier predicted for Might within the Nikkei-Markit flash manufacturing PMI, launched on Might 23, which supplies an earlier glimpse of producing exercise within the nation.