More dour news for north Asian growth this morning with Japan’s August PMI contracting more swiftly on the month:
After adjusting for seasonal factors, the headline Markit/JMMA Purchasing Managers’ Index™ (PMI™) posted 47.7 in August, down from 47.9 one month previously, signalling the sharpest worsening of Japanese manufacturing sector operating conditions since April 2011. Moreover, the latest deterioration in business conditions was broad-based across all three market groups.
Japanese manufacturing production declined further in August, with the rate of contraction accelerating to the fastest in 16 months. The latest reduction in factory output was the third in as many months. Where a drop in manufacturing production was recorded, companies mentioned lower levels of new business. The rate of decline in new work was marked, and broadly unmoved since the month before. New export business fell at a similarly sharp rate, albeit one slower than in July. Anecdotal evidence provided by survey respondents suggested that falling new orders reflected weak demand on global markets, with China and Europe mentioned in particular.
Meanwhile, industrial production for July slumped as well down1.2% on the month with a nasty trend:
And down 1% year on year:
There is not much sign of any recovery in North Asia.