Markit / Jibun Bank PMIs from Japan, flash readings for July

Manufacturing 42.6

  • prior 40.1

Services 45.2

  • prior 45.0

Composite 43.9

  • prior 40.8

Disappointingly slow recovery being indicated in Japan, all 3 still in contraction.

From the report:

  • "The Japanese economy continued to struggle at the start of the third quarter, with the latest flash PM! data indicating a further sharp contraction in business activity during July. While the easing of emergency measures provided some relief, especially to the domestic sector, Japan's growth continued to be adversely affected by subdued global trade flows and restrictions on travel. All of these factors continued to weigh heavily on demand, with total new orders falling further, dragged down by a substantial decline in new exports.
  • As the economy remained mired in a downturn, companies sought to contain costs and survive the pandemic by cutting jobs. Employment continued to fall in July, with factory jobs reduced at a sharper rate than seen in the service sector. Rising unemployment adds to fears that consumption may weaken in the coming months. "Any hopes of a robust recovery need to be tempered as business sentiment about the year ahead outlook remained pessimistic on balance."