Japan’s June factory activity contracts for 14th straight month
Japan’s factory activity for June contracted for its 14th straight month amid sharp reductions in supply and demand, according to data from a business survey released on Wednesday.
Japan is one of many export-reliant nations that have been severely affected by the COVID-19 pandemic where lockdown measures disrupted supply chains and urged consumers to remain indoors.
The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 40.1 from 38.4 in May. The index remained below the 50.0 threshold that indicates expansion.
Furthermore, manufacturers have struggled with fragile demand capacity, which prevented output, new orders, and purchasing activity from expanding.
However, the future output subindex moved into positive territory for the first time since February as hopes strengthened for a gradual economic recovery, IHS Markit said.
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