Nikkei / Markit preliminary manufacturing PMI for March, the final will be out next week.
Prelim comes in unchanged m/m.
- output 46.9 (from 47.4 in Feb.), its lowest in nearly 3 years
- total new orders fell at fastest rate since June 2016
Key points via the report:
- Further production cutbacks amid weaker new order inflows
- Business confidence remains below long-run average
Commenting, Joe Hayes, Economist at IHS Markit (bolding mine):
- "Further struggles for Japanese manufacturers were apparent at the end of Q1, with latest flash PMI data showing a sustained downturn.
- Slack demand from domestic and international markets prompted the sharpest cutback in output volumes for almost three years.
- With input purchasing falling, firms appear to be anticipating further troubles in the short-term.
- Indeed, concern of weaker growth in China and prolonged global trade frictions kept business confidence well below its historical average in March."
This is familiar stuff, not just in Japan but elsewhere.
