The manufacturing sector in Japan continued to contract in March, albeit at a slower pace, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 49.2.
That's up from 47.7 in February, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Reflective of trends in production levels was a sustained contraction in order books. While solid, the decline was the slowest since last October however amid cooling demand in both domestic and international markets. As such, foreign demand for Japanese manufactured goods reduced for the thirteenth month in a row.
Panel members often linked the contraction to easing overseas client confidence. Mirroring demand, firms reduced input purchases for the eighth time in as many months at the end of the first quarter.
