The coronavirus pandemic has greatly affected the economies of several countries, and in lieu with the same, Japan’s economy has been continuously witnessing a dwindling affect.
Japan’s factory activity contracted for a 15th straight month in July, indicating the economic downfall from the coronavirus crisis extended into the third quarter of the year.
The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 42.6 from a final 40.1 in June, as broader conditions remained fragile though the pace of decline was the slowest in four months.
The PMI survey showed that the manufacturing index stayed below the 50.0 threshold that separates contraction from expansion for a 15th month, with overall output, new orders and employment all in decline again. The PMI survey also showed weakness in service-sector activity, which saw outstanding business, business expectations and employment conditions contract.
Joe Hayes, economist at IHS Markit, which compiles the survey, said, “The Japanese economy continued to struggle at the start of the third quarter … While the easing of emergency measures provided some relief, especially to the domestic sector, Japan’s growth continued to be adversely affected by subdued global trade flows and restrictions on travel.”