Japan Flash Manufacturing PMI Contracts in April

Japanese manufacturing activity contracted in April for the first time in almost a year as domestic orders and output fell, which could fuel concerns that the country’s modest economic recovery is losing momentum.  The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 49.7 in April from a final 50.3 in March.

The index fell below the 50 threshold that separates contraction from expansion for the first time since May last year.  New orders fell to a preliminary 48.5 from 49.4 in March, contacting for a second straight month and at a faster clip.

The output index fell to 49.7 in April, its first contraction in nine months.  The index for new export orders also fell to a preliminary 51.0 from a final 52.0 in the previous month, but continued to expand as the weak yen helped improve Japanese exporters’ price competitiveness.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.