Activity in the Japanese manufacturing sector deteriorated at the sharpest pace in sixteen months in August, 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 dropped to 47.7 in August from 47.9 in July, indicating the fastest deterioration in operating conditions since April 2011. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth.
Data showed that the latest weakening of business conditions was broad-based across all three market groups. Production at Japanese factories declined further in August, with the rate of contraction accelerating to the fastest in 16 months.
The fall in output reflected lower levels of new business amid weak global demand, especially in China and Europe. Meanwhile, staff numbers in the manufacturing sector remained broadly unchanged from the previous month in July.
Average input prices in the sector decreased for a third successive month in August, and the rate of decline was the steepest in 33 months. Firms reduced their average tariffs during August in line with the lower input costs.
by RTT Staff Writer
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