April 23, 2015

The Markit/JMMA Flash Manufacturing Purchasing Managers’ Index (PMI) declined from the revised 50.3 in March (previously reported: 50.4) to 49.7 in April. As a result, the index now sits below the 50-threshold that separates expansion from contraction in the manufacturing sector for the first time since May 2014.



April’s result mostly reflected that new orders declined at a faster rate compared to the previous month and that manufacturing output dipped into contraction mode for the first time since July 2014. On the upside, the employment and the stocks of materials purchased categories rebounded in the same month. Markit/JMMA analysts stated that, “latest data signalled worsening operating conditions in the Japanese manufacturing sector.” However, they noted that, “reports of a favourable yen/dollar rate continued to help improve price competitiveness, as companies noted a rise in new export orders for the tenth consecutive month.”