Japan manufacturing slipped in June due to a steep decline in output, IHS Markit reported Wednesday.
Jibun Bank Japan Manufacturing Purchasing Managers’ Index dropped to 51.5 in June from 53.0 in May, the weakest reading in four months. Output posted its first decline since January, and its biggest since November 2020.
The Flash Composite Index slipped to 47.8 from 48.8 in May; the Flash Services Business Activity Index grew to 47.2 from 46.5; while the Flash Manufacturing Output fell to 49.1 from 53.7.
IHS Economist Usamah Bhatti said the latest flash PMI data signalled a “quicker deterioration” in business, after remaining in contraction territory. New orders posted the biggest drop since February. Optimism of private sector businesses grew in June from the previous month, boosted by the vaccination program that would further ease restrictions and drive recovery.
Private sector firms continued to expand employment, marking the fastest pace of job creation since January 2020.