Japan PMI Manufacturing was finalized at 47.8 in February, down from 48.8 in January. Markit noted that company cut production as demand deteriorates markedly. Supply chains were also adversely impacted by the coronavirus outbreak. Output growth expectations also weakened.
Joe Hayes, Economist at IHS Markit, said: Near-term prospects for industrial sector appear “very bleak”. “Consumer, intermediate and capital goods producers recorded faster declines in demand and overall order books fell at the sharpest rate in over seven years”. The manufacturing recession “goes much deeper” than the coronavirus outbreak, but lower sales in China “further woes to an already-fragile external environment.”.
Also from Japan, capital spending dropped -3.5% in Q4, below expectation of -2.5%.
