Japan’s manufacturing contraction eases

Japan’s manufacturing contraction eased last month, with the Jibun Bank Manufacturing Purchasing Managers’ Index (PMI) rising to 49 in February from 48.7 in January, while the preliminary reading was 48.9 last month, according to the final data from S&P Global.

A reading below 50 indicates contraction in economic activity in the sector, while a reading above 50 indicates growth.

The data showed that the production sub-index continued to decline for the sixth straight month, but at a slower pace, while new orders continued to decline, mainly due to weak demand and weak customer confidence.

The continued contraction in manufacturing activity led to a broad slump in hiring and a significant decline in purchasing activity and backlogs.