According to the latest 'flash' Nikkei Japan ManufacturingPMI™, business growth halted in January, ending the longeststreak of expansion in the sector since the global financialcrisis. Survey data indicated that goods producers in Asia'ssecond-largest economy cut output for the first time intwo-and-a-half years, while new orders also fell.
Weaker demand conditions were particularly apparent on theinternational front, where exports decreased at the sharpest ratesince July 2016. The flash survey indicates that headwinds arisingfrom slowing global growth are set to persist for Asianmanufacturers as we head into 2019.
The headline Japan Nikkei Flash Manufacturing PMI, which isbased on 85-90% of usual monthly responses, declined to 50.0 inJanuary from 52.6 in December, signalling no change in businessconditions. The stagnation ends the longest expansionary streak inJapan's goods-producing sector for over a decade. Furthermore, it'sthe lowest reading since August 2016. The fall reflected declinesin key health barometers, including output and new orders fallingin conjunction for the first time in two-and-a-half years.
Global trade cycle downturn intensifies