Japan Manufacturing Sector Shrinks At Slower Pace

(RTTNews) - Japan's manufacturing activity continued to contract in February albeit at a slower pace, final survey data from S&P Global revealed on Monday.

The au Jibun Bank manufacturing Purchasing Managers' Index rose to 49.0 in February from 48.7 in January. The flash reading was 48.9.

However, a reading below 50.0 indicates contraction. Operating conditions deteriorated for eighth straight month. Factory output fell for the sixth successive month during February but at a slower pace. New orders dropped further. Manufacturers cited demand retrenchment and weak client confidence as the key factors behind the fall.

The subdued manufacturing performance was also reflected in a broad stagnation in employment levels and solid declines in purchasing activity and backlogs of work.

Expectations towards the year-ahead outlook for output remained positive but eased from January to the lowest since June 2020.