Japan Composite PMI Down to 47.7 in July Amid Optimism in the Private Sector

Source: (HIS Markit) 

Japan Composite PMI output index dropped to 47.7 in July, from 48.9 recorded in June as private sector activity waned.

USDJPY is down -0.16%, NI225 is up +1.04%.

• The Manufacturing Output Index remained narrowly in the expansion zone after falling from 50.7 in June to 50.5 in July.
• Manufacturing output and order growth smoothened to six-month lows due to the increasing Covid-19 cases and delays in receiving raw materials.
• The demand for labor eased in July, and the rate of job creation was at the lowest since April.
• The Service Business Activity Index moved down from 48.0 in June to 46.4 in July.
• Private sector input costs rose substantially and rose the fastest since September 2008.
• Japanese private sector is optimistic that the business condition will look up with the rollout of Covid-19 vaccination that could see restrictions in movements lifted.