The Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) has dropped to 48.9 in September, the lowest level since June 2016.
The PMI stood at 49.3 in June. A reading below 50 indicates contraction.
Both new orders and new export orders have declined in September, although at a weaker pace.
The contraction in Japan’s manufacturing is hardly surprising, given the external headwinds, namely, US-China trade tensions, the Hong Kong protests, Brexit and the diplomatic issues between Japan and South Korea.
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