Activity in the Japanese manufacturing sector stagnated in June, after recording modest growth in the previous month, data from a survey by Markit Economics and the Japan Materials Management Association (JMMA) showed Friday.
The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector declined to 49.9 in June from 50.7 in May, dipping slightly below the no-change 50 mark that separates growth from contraction. The latest reading was the lowest in seven months.
New business received by manufacturers fell for the first time in six months, though at a marginal rate, reflecting muted demand conditions in both home and external markets. Production in Japanese factories decreased for the fist time in six months in June, though at modest rate.
Companies increased their workforces at a slower rate during the month, amid the weak economic outlook.
Input costs faced by goods producers decreased marginally in June as the persistent yen strength continued to depress the cost of imported items. Firms reduced their output charges further in June, at a rate that was the sharpest since December 2010. Companies commented on strong competitive pressures and client requests for lower charges.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.