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Manufacturing in Japan declined fastest in over three years

Staff writer ▼ | May 2, 2016
Latest survey data pointed to a sharp deterioration in manufacturing conditions in Japan.
Manufacturing in Japan
Asia   Nikkei Japan Manufacturing PMI
Production decreased at the quickest rate since April 2014, led by the fastest decline in new orders in over three years. As a result, firms cut back on their input buying at the most marked rate in two years.

Employment, on the other hand, remained in growth territory for the seventh consecutive month.

Meanwhile, input prices declined at the quickest rate since August 2012, enabling companies to lower their charges further.

The headline Nikkei Japan Manufacturing Purchasing Managers’ Index (PMI) is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.

Any figure greater than 50.0 indicates overall improvement of sector operating conditions.

The headline PMI posted 48.2 in April, down from 49.1 in March, thereby highlighting a sharper deterioration in operating conditions at Japanese manufacturers.

Moreover, the latest reading was the lowest since January 2013.