The flash manufacturing PMI for Japan in February was out at the same time as the Australian jobs report

Catching up on it:

Comes in at 48.5,

  • dropping from the previous 50.3 and into contraction for the first time since August 2016
flash manufacturing PMI for Japan in February

Comment, Joe Hayes, Economist at IHS Markit, which compiles the survey:

  • "Survey data for Japan's manufacturing sector ebbed into negative territory in February, reflecting sharper reductions in demand and production. Although the initial Q4 estimate revealed a bounce back in economic activity, the PMI suggests underlying business conditions are unfavourable. This was further highlighted by output expectations turning negative for the first time in over six years, which comes as no surprise given the international headwinds Japanese manufacturers are facing such as a China slowdown and the global trade cycle losing further steam. Unless service sector activity can offset manufacturing weakness, the chance of Japan entering a recession in 2019 looks set to rise."

A poor result indeed, adding to the less than upbeat data from Japan we have been seeing.