Production and new orders in the Japanese manufacturing sector fell in July to their lowest level in 10 months. This is hitting the economy, which is struggling to recover after the epidemic.
Economic activity in the service sector continued to expand at a slower pace. This indicates weaker domestic demand due to the depreciation of the yen, and an increase in the cost of imports. Given this, there are concerns about the potential impact on the economy.
The PMI fell seasonally to 52.2 in July from 52.7 in the previous month. This was the slowest growth since September last year.
The PMI figures were impacted by the first drop in production in five months and the first overall decline in new orders since last September. New export orders contracted for the fifth month in a row.
The PMI fell to 51.2 in July from 54.0 in June, marking the fourth consecutive month of decline. The PMI, which is calculated for both manufacturing and services, fell to 50.6 from 53.0 in June