Japan Jibun Bank / Markit preliminary PMIs for April

Manufacturing 43.7

  • prior 44.8

Services 22.8 … lowest ever

  • prior 33.8

Composite 27.8

  • prior 36.2

Horrendous results.

Joe Hayes, Economist at IHS Markit:

  • "PMl data for Japan tell us thot the crippling economic impact from the global corona virus pandemic intensified in April
  • Furthermore, the data show us the initial impact of Japan's lockdown.
  • The survey was conducted between 7 and 21 April
  • The 7th was the day Prime Minister Abe announced a state of emergency in some parts of Japan, although this was upgraded to a nationwide state of emergency on the 16th and extended the lockdown to the whole country.
  • The decline in combined output across both manufacturing and services was the strongest ever recorded by the survey in almost 13 years of data collection, surpassing declines seen during the global financial crisis and in the aftermath of the 2011 tsunami.
  • Overall, GDP looks set to decline at an annual rate in excess of 10% in the second quarter. The current state of emergency will stay in place until 6 May, although given Japan's lagged response relative to other parts of the world, one would expect this to be extended, meaning the harsh economic effects are likely to drag out further."

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Earlier in the session, flash PMIs from Australia … awful;