May 23, 2017
The Nikkei Flash Japan Manufacturing Purchasing Managers’ Index, or PMI, fell to a six-month low of 52.0 in May from 52.7 in April.
source: tradingeconomics.com
A reading above 50 signals an improvement, while one below 50 points to a contraction in activity. Despite the slowdown, the latest PMI recorded the above-50 level for the ninth consecutive month.
The latest data signaled a broad-based slowdown in growth of the manufacturing sector. Output, new orders and employment all rose at their slowest rates since last November, according to IHS Markit, which compiles the survey.
"Although the growth is being maintained at a decent clip, reports of ’wait-and-see’ attitudes amongst clients, excess warehouse inventories and recent sharp rises in raw material costs all served to undermine expansion during the month," said Paul Smith, senior economist at IHS Markit.
The Flash PMI is based on around 85% of total PMI survey responses. The final PMI for May will be published on June 1.
Source: Nikkei Asian Review