Japan’s manufacturing activity has fallen to an eight-month low in July, according to IHS Markit survey results. The Nikkei Flash Japan Manufacturing Purchasing Managers Index (PMI) for July is calculated to be a seasonally adjusted 52.2, following a 52.4 level in June. The Flash Manufacturing Output Index was pegged at at 51.4, down from 52.2 in June and the weakest growth in 10 months.
"The slowdown was driven by stagnation in export orders, amid reports of weaker demand from South East Asia markets," stated Paul Smith, senior economist at IHS Markit.
"Nonetheless, the sector continues to add jobs, with employment growth remaining amongst the best since the financial crisis."
The Nikkei Japan Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 industrial companies. The panel is stratified by Standard Industrial Classification (SIC) group, based on the industry contribution to GDP. The manufacturing sector is divided into the following 8 broad categories: Basic Metals, Chemicals & Plastics, Electrical & Optical, Food & Drink, Mechanical Engineering, Textiles & Clothing, Timber & Paper, and Transport.
The flash estimate is based on around 85% of total PMI survey responses each month and is designed to provide an accurate advance indication of the final PMI data.
Information provided by IHS Markit
Related Glossary Terms
- flash
flash
Thin web or film of metal on a casting that occurs at die partings and around air vents and movable cores. This excess metal is due to necessary working and operating clearances in a die. Flash also is the excess material squeezed out of the cavity as a compression mold closes or as pressure is applied to the cavity.
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