Japan PMI Manufacturing dropped to 51.5 in June, down from May’s 53.0. Manufacturing Output dropped to 49.1, down from 53.7, back in contraction for the first time since January. PMI Services rose slightly to 47.2, up from 46.5. PMI Composite dropped to 47.8, down from 48.8.
Usamah Bhatti, Economist at IHS Markit, said: “Activity at Japanese private sector businesses remained in contraction territory… Panel members commonly associated disruption to operating conditions to ongoing COVID-19 restrictions, coupled with severe supply chain pressures, notably for manufacturers.
“That said, one bright note was private sector firms in Japan continued to expand employment levels despite subdued demand conditions… Despite the ongoing pandemic-related restrictions on the Japanese economy, private sector businesses were optimistic that business conditions would improve in the year ahead, and to a greater extent than that seen in May.”
