ECONOMICS COMMENTARY
Jul 31, 2013
Japanese PMI signals near-stalling of manufacturing sector
PMI survey data hinted at a waning impact of Japan's economic stimulus plan, dubbed 'Abenomics', at the start of the third quarter. After strong survey readings pointed to a further strengthening of GDP growth in the second quarter, the third quarter may bring disappointment to policymakers. The manufacturing PMI signalled a near-stalling of growth in the sector in July. Alongside an easing in growth of manufacturing output, new orders and exports, the survey found price pressures to have eased again, and that employment started to fall again as companies cut capacity in line with weak demand.
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