Japan’s Final Manufacturing PMI for July Comes in Lower Than Prelim Figure - Forex News by FX Leaders

Japan’s Final Manufacturing PMI for July Comes in Lower Than Prelim Figure

Posted Thursday, August 1, 2019 by
Arslan Butt • 1 min read

Japanese manufacturing continues to suffer for a third straight month, as the final PMI figures from Jibun Bank for July came in at 49.4. Although this figure has improved since June when it was at 49.3, it still indicates contraction as it is below the 50 threshold.

The final PMI reading has also come in lower than the preliminary reading, which stood at 49.6 in July. Japan’s export-oriented economy is still reeling under the effects of the US-China trade war, with factory output in contraction for the seventh consecutive month. The factory output also fell at the fastest pace in four months during July.

Total new orders also remain in contraction at 48.1, with new export orders falling lower at 47.6. Weak outputs and adequate stockpiling have brought down companies’ purchasing levels to a three-year low in Japan.

On the release of this news, USD/JPY has made a sharp bullish turn, having climbed over the 109 level and touching 109.19 at the time of writing.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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