The composite PMI in Japan registered a disappointing decline to 48.9, against July’s 50.3, and significantly undershot a forecast of 50.6 by Trading Economics. Services and composite PMI both fell below 50 to 7-month lows, reaching 49.6 and 49.8 from 50.9 and 51.1 in July, respectively.Ĭontinued hikes by the central bank amid a 21-year high in inflation are beginning to curtail consumer demand and further tightening will likely aggravate the slowdown. Underlying demand was shaken by historic levels of inflation, while the downside may have been limited by workers returning to work after an extended period of strict lockdowns.ĭespite falling commodity prices, manufacturing PMI fell to a 12 – month low. Manufacturing PMI continued to expand to 54.5 although it slowed from 55.7 in July. Primarily, sustained inflationary pressures, geopolitical stresses and continuing rate hikes have dampened consumer demand leading to a contraction in private sector business activity and accelerating inventory accumulation. Overall, August PMIs have proved softer than in July, and have fallen below consensus expectations in many cases, suggesting the possibility of a significant slowdown in Q3. Readings over 50 suggest that business activity is picking up, i.e., an expansion compared to the previous month, while below 50 indicates a contraction. Sign-up for the Invezz newsletter, today.

They tend to reflect changes in market conditions – an improvement, deterioration or unchanged.Īre you looking for fast-news, hot-tips and market analysis? These data summarize whether surveyed purchasing managers believe business activity is expanding, contracting or staying the same. Earlier today, S&P Global released much-awaited Purchasing Managers’ Index data for several major economies.

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