Japan’s factory activity decelerates in June
An expansion seen in Japan’s manufacturing sector decelerated the sharpest in four months ended June. The decline could possibly be from flat lines that the world’s third-largest economy was experiencing ahead of Tokyo’s Olympic Games in July.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index (PMI) was read at a seasonally adjusted 51.5 in June. The figure placed lower than the 53.0 reading in May as a sharp contraction in output took a tool on the sector. As for output, it also plunged at the quickest pace since last November, the PMI survey showed.
The private sector’s factory activity retained its second month of decline as subdued manufacturing figures and a deepening decline in the services sector restricted growth. This, in turn, clouded the outlook for the country’s second-quarter economic rebound.