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

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.

Arslan Butt•Thursday, August 1, 2019•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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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.