Japan: Manufacturing PMI recovers slightly in June from May's over-three-year low
June 23, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) ticked up from May’s revised 47.7 (previously reported: 47.6) to 47.8 in June. May’s print marked the lowest reading since December 2012. Despite the mild increase, the index remains well below the 50-threshold that separates expansion from contraction in the manufacturing sector.
June’s print suggests that the country’s all-important manufacturing sector remains in the doldrums due to a strong yen and negative spillovers from the two earthquakes that hit the Kyushu region in April. Nikkei analysts added that, “both production and new orders declined at marked rates, led by a sharp drop in international demand […]employment growth eased to the weakest in nine months of expansion suggesting further stimulus may be needed in order to improve Japan’s economy.”