Business News Asia
Japanese manufacturing growth slowed to a 19-month low in August. Production and new orders fell even further in the face of increasing pressure. This was due to the continued rise in raw material and energy costs as well as weak global demand.
Meanwhile, economic activity in the services sector contracted for the first time in five months as a drop in new business raised concerns about weak domestic demand.
Jibun Bank’s manufacturing purchasing managers’ index (PMI) fell to 51.0 in August from 52.1 in July, the lowest growth rate since January last year.
However, the PMI above 50 indicates that Japan’s manufacturing sector continues to expand.
The manufacturing PMI fell for the second month in a row as overall production and new orders declined. The number of new orders fell at the fastest rate in almost two years.
The PMI for the primary services sector fell to 49.2 in August from 50.3 in July, the first decline since March.
The composite PMI, which includes manufacturing and services, fell to 48.9 in August from 50.2 in July.