Mount Fuji, Japan

Japan PMI March 2019

Japan: Manufacturing sector stabilizes at low levels in March

The Nikkei flash manufacturing Purchasing Managers’ Index (PMI) was unchanged at February’s 48.9% (previously reported: 48.5) in March, the lowest level since July 2016. As a result, the index sits below the 50-point threshold that separates expansion from contraction in the manufacturing sector.

March’s reading reflected that all-important output and new orders declined at a faster rate compared to the previous month. Employment growth, however, accelerated in the same month. Stocks of purchases increased in March following a decline in February, while suppliers’ delivery times continued to lengthen. New export orders continued to fall in March, reflecting an uncertain global economic outlook.

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

“Further struggles for Japanese manufacturers were apparent at the end of Q1, with latest flash PMI data showing a sustained downturn. Slack demand from domestic and international markets prompted the sharpest cutback in output volumes for almost three years. With input purchasing falling, firms appear to be anticipating further troubles in the short-term. Indeed, concern of weaker growth in China and prolonged global trade frictions kept business confidence well below its historical average in March.”

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