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Japan’s factory activity shrank in February at the fastest pace in over two years, a private survey showed, highlighting companies’ struggles amid a global economic slowdown, raw material inflation and policymakers’ calls for higher wages.
The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index released on Wednesday fell to 47.7 in February from January’s 48.9. Although higher than the flash reading, it marked the fastest decline since September 2020.
“Both new orders and production levels, which make up 55 percent of the headline PMI figure, fell at the fastest pace since July 2020 as weak domestic demand and a global economic slowdown hindered sales and output volumes,” said economist Usamah Bhatti at S&P Global Market Intelligence, which compiles the survey.
