The manufacturing sector in Japan continued to contract in April, albeit at a slower rate, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 49.5.
That's up from 49.2 in March although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
The improvement in the reading came from a slower reduction in total new order inflows. Firms registered a tenth consecutive reduction, but the rate of contraction was the softest since last November. Weak economic conditions domestically and globally reportedly weighed on demand and client confidence, though some firms mentioned that inbound demand had stabilized somewhat.
As such, the rate of reduction in foreign demand for Japanese manufactured goods eased to the slowest for six months. Despite this, production levels at Japanese goods producers in April decreased at a moderate pace that was nonetheless sharper than that in March.
