Japanese Manufacturing Sector Shrinks Further in September, Weakest PMI in Over Three Years - Forex News by Strategia Forex
USD/JPY

Japanese Manufacturing Sector Shrinks Further in September, Weakest PMI in Over Three Years

Posted Tuesday, September 24, 2019 by
Arslan Butt • 1 min read

According to data released by IHS Markit, the manufacturing sector in Japan continues to contract further over a decline in new orders and new export orders. The Jibun Bank Flash Manufacturing PMI fell to 48.9 in September from a final reading of 49.3 in August, indication more contraction in this sector.

External risks such as the ongoing US-China trade war continue to wreak havoc on Japan’s manufacturing sector, which weighs heavily on China as one of its key trade partners. In addition, this sector is also facing pressure from other overseas risks, including Brexit, Hong Kong protests, and the trade dispute with South Korea.

September’s reading is the lowest level this index has touched since June 2016. Employment in the sector has also grown at a weaker pace in September than in the previous month, while manufacturers surveyed indicate a weaker positive outlook for the future of this sector in the next 12 months.

On the release of this news, the Japanese yen has failed to make much of a move. At the time of writing, USD/JPY is trading at around 107.52, following a brief spike and a climb lower since then.

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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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