Japan’s manufacturing sector sees sharper contraction in February
(MENAFN) Japan’s manufacturing sector experienced a sharper contraction this month, according to data released by Jibun bank on Monday. The report indicated that economic activity in the sector continued to decline, reflecting ongoing challenges faced by manufacturers. The downturn highlights persistent economic pressures affecting production and demand in key industries.
The purchasing managers' index (PMI) for the manufacturing sector fell to 48.7 points in January, down from 49.6 points in December. A reading below 50 points signifies a contraction in economic activity, while a reading above 50 indicates growth. The decline suggests that Japan's manufacturing industry is struggling to regain momentum amid broader economic uncertainties and weakening demand.
Additionally, the manufacturing output sub-index recorded its fifth consecutive monthly decline, signaling a continued slowdown in average production levels. The index also dropped to its lowest point in a decade, with companies frequently attributing production cuts to a lack of new orders. This trend reflects ongoing weakness in demand across various sectors, making it difficult for manufacturers to sustain output growth.
The sub-index for new orders in the manufacturing sector also decreased in January, further signaling a challenging business environment. Companies experiencing declining sales pointed to a persistent lack of customer confidence, particularly in the semiconductor and automotive industries. This suggests that concerns over economic conditions and market demand continue to weigh on business activity in Japan’s key manufacturing sectors.
MENAFN03022025000045015839ID1109159944
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.