(RTTNews) - The manufacturing sector in Japan continued to expand in August, albeit at a slower pace, the latest survey from Jibun Bank revealed on Thursday with a manufacturing PMI score of 51.5.
That's down from 52.1 in July, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.
The lower reading of the headline index was partly the result of a sharper decrease in new orders. Sales fell for the second month running, and at the sharpest rate since October 2020. Firms commented that orders were dampened by a rise in COVID-19 cases, as well as weaker domestic and global economic conditions. Export orders also fell at a steeper rate that was the fastest for three months amid weaker demand across the Asia-Pacific region, most notably in China and South Korea.
Production levels fell for the second successive month in August. While only marginal, the rate of decline was the strongest recorded since last September. Firms linked the contraction to falling new orders and weak demand, along with sustained raw material shortages.
