Japan PMI manufacturing improved to 49.6 in July, up from 49.3, but missed expectation of 49.7. PMI services rose to 52.3, up from 51.9. PMI composite rose to 51.2, up from 50.8.
Commenting on the latest survey results, Joe Hayes, Economist at IHS Markit, said:
“Trends witnessed in the Japanese private sector so far in 2019 were more-or-less maintained at the start of the third quarter. Composite ‘flash’ data for Japan show a modest improvement in private business output in July, with consumption of services supporting the economy, as it has done in the year-to-date. Overall private sector output expanded at the fastest pace in seven months on the back of faster growth in services activity.
“The manufacturing sector’s plight continued, however, where production was cut in July for the seventh successive month. Weak demand from China remained a key factor behind sluggish demand for Japanese goods. Heightened frictions between Japan and South Korea also add downside risk to the manufacturing supply chain in Japan, creating additional slack that services may once again have to compensate for.”
