Nikkei Manufacturing PMI for March (final), in line with its 'flash' reading at 49.1

  • preliminary reading was 49.1
  • prior (for February) was 50.1

'Key points':

  • Production declines for the first time since April 2015
  • New orders fall at sharpest pace in nearly two years
  • International demand decreases at quickest rate since January 2013

Comment from Amy Brownbill, economist at Markit:

  • "Manufacturing conditions in Japan worsened at the end of the first quarter of 2016.
  • Both production and new orders contracted, with total incoming work declining at the sharpest rate in nearly two years.
  • Latest PMI data suggests the primary factor behind the fall in total new work was a sharp drop in international demand, as new export orders decreased at the fastest rate since January 2013.
  • Not surprisingly, goods producers were less confident towards their hiring policies, with the rate of job creation easing to a six-month low.
  • Meanwhile, on a more positive note, cost pressures were reduced further, with input prices declining at the quickest rate in over three-and-a-half years.
  • As a result, manufacturers were able to reduce their selling prices."

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Reading that lot ... wow ... what a terrible result.