Mount Fuji, Japan

Japan PMI May 2019

Japan: Manufacturing PMI dips into negative territory in May on trade concerns

The Nikkei flash manufacturing Purchasing Managers’ Index (PMI) fell from April’s 50.2 (previously reported: 49.5) to 49.6 in May. Therefore, the index now sits below the 50-point threshold that separates expansion from contraction in the manufacturing sector.

May’s reading reflected that all-important output and new orders declined at a faster rate compared to April’s print. Moreover, employment growth lost some steam in the same month. Stocks of purchases decreased further in May, while suppliers’ delivery times continued to lengthen. The decline in new export orders accelerated in May, reflecting weak global demand and mounting uncertainty following escalating trade tensions between China and the United States.

Joe Hayes, economist at IHS Markit, which compiles the survey, noted that:

“Following some tentative signs that the downturn in Japan’s manufacturing sector had softened in April, flash data for May revealed these were short-lived, as output and export orders fell at stronger rates. The re-escalation of US-China trade frictions has heightened concern among Japanese goods producers. Underlying growth weakness across much of Asia led to struggling exports, which fell at the sharpest rate in four months. Difficulties on the international front merely add to uncertainties domestically, with upcoming upper house elections in July, and the impending sales tax hike later this year.”

Japan Industrial Production Forecast

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest