The final results for this PMI, you can find the prior and preliminary here:
The final comes in ahead of the prelim number but still well under the January result
More:
- headline drops into contractions, first time since August of 2016
- manufacturing activity contracted at the fastest pace in two-and-a-half years
- output component 47.4, down froml 54.4 in January … fastest contraction since May 2016
- Total new orders - domestic and foreign - fell at the fastest pace since June 2016
Comments from Joe Hayes, Economist at IHS Markit:
- Sharper reductions in output and demand drove the Japanese manufacturing economy into contraction during the midway point of Q1, compounding reductions already recorded in January.
- Global trade frictions and weak domestic manufacturing demand pose considerable risks to Japan's goods producers. As such, firms pared back expectations to near-neutrality.
- The rebound seen in the official Q4 GDP estimate does not appear to be reflective of underlying economic conditions in Japan.
- With the consumption tax hike set to come into play later this year, weak domestic demand will only heighten fears that the economy could be poised for a downturn. Focus turns towards service sector data, which will need to show signs of resilience in order to offset the manufacturing drag.