au Jibun Bank manufacturing PMI slips to 49.8 in Jan

SINGAPORE (ICIS)–au Jibun Bank’s manufacturing purchasing managers’ index (PMI) for Japan fell to 49.8 in January from 50.0 in December 2020 on a drop in output as rising coronavirus cases had a renewed impact on the economy, the Japanese bank said on Monday.

A PMI reading below 50 indicates a contraction in the manufacturing economy.

“After remaining broadly unchanged in December, output fell at a marginal pace [in January]”, the bank said.

“Where production fell, firms often attributed this to rising Covid-19 infections and the implementation of new restrictions under a new state of emergency,” it said.

Some companies noted that the pandemic had dampened client confidence at the start of this year.

“At the same time, goods producers recorded a third consecutive decline in export demand, and one that was quicker than that seen in December,” au Jibun Bank added.

Interactive by Nurluqman Suratman