Japan: Manufacturing PMI falls to negative territory in June
June 23, 2015
The Markit/JMMA Flash Manufacturing Purchasing Managers’ Index (PMI) fell from 50.9 in May to 49.9 in June. As a result, the index now sits below the 50-threshold that separates expansion from contraction in the manufacturing sector.
June’s result reflected a broad-based deterioration as all the main components that make up the index fared worse compared to the previous month, with new orders dipping into the red and manufacturing output expanding at a slower rate. Markit/JMMA analysts stated that, “latest data signalled negligible deterioration in operating conditions at Japanese manufacturers. Production growth slowed to a fractional pace, while new orders contracted for the third time this year so far. Subsequently, employment growth was subdued, while buying activity declined. Meanwhile, reports of a favourable exchange rate and an increase in foreign demand led to a further rise in new export orders in June.”