Saturday , February 4 2023

Japan – shrinking production for the third month in rank


Production activity in Japan shrank in July for a third consecutive month, albeit at a slower pace than the previous month, according to the preliminary results of the Markit study. / Nikkei from Supply Managers.

Data released on Wednesday, however, indicate a recovery in the service sector, providing relief for the Japanese economy in the context of the Sino-US trade conflict and the diplomatic tensions between Tokyo and Seoul moved to the trading ground.

PMI Flash Industry was 49.6 in July on a seasonally adjusted basis, which was a jump in June (49.3).

However, it remains for a third consecutive month below the threshold of 50, which separates shrinkage and expansion.

Industrial production and new orders have dropped again, highlighting the pressure faced by the Japanese economy, which is heavily dependent on exports to China and the United States.

"China's weak demand remains a key factor in explaining the slow demand for Japanese products," said Joe Hayes, an economist at IHS Markit, the research firm.

"With the growing tensions between Japan and South Korea, there is an increased risk for the supply chain in Japan, leading to further delays that the service sector may have to compensate again," he adds. that.

According to separate published data, the flash version of the PMI index rose to 52.3 in July on a seasonally adjusted basis, compared to 51.9 at the end of the previous month.

This is the highest level since last February.

The composite PMI, which includes the manufacturing and services sector, grew in July to 51.2 points from 50.8 in June. (Daniel Lossink, Jean Terzian for French Service)

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