Mount Fuji, Japan

Japan PMI June 2019

Japan: Manufacturing PMI falls to three-month low in June amid rising global trade tensions

The Nikkei flash manufacturing Purchasing Managers’ Index (PMI) fell from May’s 49.8 (previously reported: 49.6) to 49.5 in June, which represented a three-month low. Therefore, the index remains below the 50-point threshold that separates expansion from contraction in the manufacturing sector.

June’s print reflected that all-important output and new orders declined at a faster rate compared to May’s print, reflecting weaker demand from both global and domestic markets. Against this backdrop, suppliers’ delivery times continued to lengthen, while stocks of purchases declined further in June. On the upside, job creation increased at a faster pace.

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

“A soft patch for automotive demand and subdued client confidence in the wake of US-China trade frictions were often cited by survey respondents. Disappointing sales volumes also led to the largest accumulation of finished goods inventories for over six and-a-half years. At the same time, backlogs of work were depleted to the greatest extent since January 2013, which will likely act as an additional drag on production volumes in the months ahead.”

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