The prior and flash reading is here
Joe Hayes, Economist at IHS Markit:
- "Japan's manufacturing downturn deepened in March as a result of the global COVID-19 pandemic which on top of the international supply chain paralysis caused by shutdowns in China, and now other parts of the world, has also dealt a severe blow to export demand.
- The consequence was the steepest drop in goods production since the aftermath of the devastating tsunami in April 2011. Furthermore, firms reported an aggressive drop in new orders from the previous month, reflecting lower client demand in domestic and external markets.
- The likelihood of the manufacturing recession deepening in the coming months is high. Latest data showed a sharp fall in inventories of inputs, which firms are going to find challenging to replenish in order to sustain factory production. There were reports among some panel members of production schedules being suspended, particularly those in the automotive sector. Overall, the cascading impact of COVID-19 on the global economy is diminishing the chances of a V-shaped recovery."
Both the level and the steepness of the drops are concerns. Perhaps April will bring a reprieve.
