The manufacturing sector of Japan continued to shrink in August; however, at a slower pace, showed the latest Nikkei survey index. The Flash Japan Manufacturing PMI came in at 49.6 in August. This is a slight rise from July’s 49.3. However, it remains below the benchmark 50.0.
Glancing at the sub-index, manufacturing output expanded in August for the first time since February The index rose to 50.6 in the month from 49.4 in July. However, new orders, new export orders, output prices, input prices stocks of purchases and stocks of finished goods all shrank in August at a slower pace. The employment index contracted in August after expanding in July.
“Japan’s manufacturing sector edged closer to stabilisation in August, but the latest batch of PMI data gave a mixed picture overall. Relatively weak client demand alongside a strong yen prompted firms to cut their selling prices at the sharpest rate since October 2012 as part of efforts to attract new business”, said Annabel Fiddes, economist at IHS Markit.
