Japan’s May factory activity reels as pandemic hits output, orders: PMI

imageEconomic Indicators10 hours ago (May 20, 2020 08:40PM ET)

(C) Reuters.

TOKYO (Reuters) – The decline in Japan’s factory activity accelerated in May as output and orders slumped, highlighting increasing stress in the manufacturing sector from the coronavirus pandemic.

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index (PMI) slipped to a seasonally adjusted 38.4 from a final 41.9 in April, its lowest since March 2009.

The headline figure was pulled down by sharp declines in output, new orders and the backlog of work, which all contracted at the fastest pace in more than a decade.

“While the rate of decline in services activity has eased very slightly, plummeting demand for goods is finally catching up with the manufacturing sector,” said Joe Hayes, economist at IHS Markit, which compiled the survey.

A bright spot in the gloomy data were employment conditions, which were flat. The index stayed below the 50.0 threshold that separates contraction from expansion for a 13th month.

The pandemic has been particularly disruptive for global supply chains, causing trouble for trade-reliant nations such as Japan.

The world’s third-largest economy fell into recession for the first time in 4-1/2 years in the first quarter, data showed this week.

Analysts polled by Reuters foresee a record decline for the economy in the current quarter.

Japan’s services sector also remained deep in contraction, although the pace of decline moderated slightly. The au Jibun Bank Flash Services PMI index edged up to 25.3 on a seasonally adjusted basis from a record low of 21.5 in the previous month.

The au Jibun Bank Flash Japan Composite PMI, which includes both manufacturing and services, stood at 27.4 in May, slightly above the previous month’s final of 25.8.

Japan’s May factory activity reels as pandemic hits output, orders: PMI

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *