Contraction of the pace of activity of Japanese factories - Sadahadhramowt | News

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الثلاثاء، 21 فبراير 2023

Contraction of the pace of activity of Japanese factories

Tokyo-agencies : 

Factory activity in Japan contracted at the fastest pace in 30 months in February, in a worrying sign for the world's third-largest economy, which is facing weak demand and is finding it difficult to curb cost pressures.


The bank (or Gibbon) preliminary index of purchasing managers of the manufacturing sector fell to 47.4 in February after adjusting for seasonal factors, from a final reading of 48.9 in the previous month.


The index remained below the 50-point level separating growth from contraction for the fourth consecutive month and represented the largest decline since August 2020 at 47.2.


Sub-index data showed factory production and new orders fell for the eighth month in a row and at faster rates than in January.


Export orders also recorded the largest decline since July 2020 due to persistent weak global demand, which was reflected in recently released indicators such as GDP, which grew at a slower pace than expected in October and December, and the record trade deficit in January.


By contrast, service sector activity grew for the sixth month with further easing of restrictions that the authorities had imposed to contain the Coronavirus outbreak.


The bank (or Gibbon) preliminary index of purchasing managers of the services sector rose to an eight-month high of 53.6 in February after being adjusted for seasonal factors from a final reading of 52.3 the previous month.


But input costs for service companies rose at the fastest pace in eight months while the inflation of the prices they charged customers only rose to the highest level in two months, indicating a decline in profits.

     


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