Japan May flash PMI snaps back into contraction as Sino-U.S. trade war escalates [Reuters]
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Source: Reuters
Japan May flash PMI snaps back into contraction as Sino-U.S. trade war escalates TOKYO (Reuters) - Japanese manufacturing activity swung back into contraction in May as export orders fell at the fastest pace in four months, highlighting why policy makers and investors remain anxious about the growing economic impact of a bruising Sino-U.S. trade war. The Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 49.6 in May from a final 50.2 in the previous month. The 50 mark separates contraction from expansion, and the latest result dashed expectations that Japan’s crucial manufacturing sector had started to bottom out after shrinking in both February and March. “The re-escalation of US-China trade frictions has heightened concern among Japanese goods producers,” said Joe Hayes, economist at IHS Markit, which compiles the survey. “Underlying growth weakness across much of Asia led to struggling exports, which fell at the sharpest rate in four mon
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