Nikkei Flash Japan Manufacturing PMI drops to 53.2 in March

The latest flash manufacturing PMI data from the Japanese economy, as published by the Nikkei, showed the weakest improvement in business conditions since October 2017.

Flash Japan Manufacturing PMI declines in March to 53.2, from 54.1 in February and against 54.3 expectations.

Key Points:

New orders increase, albeit to the weakest extent in five months.

Job creation eases amid joint-softest pace of output growth since July 2017.

Commenting on the Japanese Manufacturing PMI survey data, Joe Hayes, Economist at IHS Markit, which compiles the survey, said: “The headline PMI declined in March, signaling a weaker improvement in overall business conditions in the manufacturing sector. Output, new order and employment growth rates all slowed, while longer lead times continued to impact supply capacities. That said, with new business increasing for an eighteenth straight month, firms raised output prices to a quicker extent, signaling confidence in the demand climate and purchasing power of their clients.”