Japan’s Tankan large manufacturing index dropped to -8 in Q1, down from 0.That’s the first negative reading in seven years, lowest since March 2013, and the fifth straight decline. Large manufacturing outlook dropped from 0 to -11. Large non-manufacturing index also dropped from 20 to 8 while outlook dropped from 18 to -1. Large all industry capex rose 1.8%, better than expectation of -1.1%.
Also from Japan, PMI manufacturing was finalized at 44.8 in March, down from February’s 47.8. Manufacturing output contracted at the sharpest rate since aftermath of 2011 tsunami. Production volumes slumped at the fastest rate for almost nine years, with sharpest drop in demand since April 2011. Supply chain issues also intensified further.
Joe Hayes, Economist at IHS Markit said, “the cascading impact of COVID-19 on the global economy is diminishing the chances of a V-shaped recovery.”
