Jibun / Markit flash manufacturing PMI for August, wilting from July but still in expansion.
- Services: 43.5
(vs. July’s 47.4)
- Composite: 45.9
Commentary from the report, in brief:
- weaker demand to ongoing COVID-19 restrictions, coupled with sustained supply chain pressures
- decline in overall private sector activity was led by the larger services sector, where business activity fell for the nineteenth consecutive month and at the quickest pace since May 2020
- While manufacturers pointed to continued output growth, the rate of expansion softened from July
- Japanese private sector businesses noted that the recent surge in COVID-19 cases related to the Delta variant had dampened prospects in the latest survey period, as firms indicated the softest degree of optimism regarding the year-ahead outlook for one year. That said, positive sentiment was solid overall as vaccination rates continued to increase markedly.