TOKYO : Japan's factory activity contracted in June after expanding for the first time in 7 months in May, a private survey showed on Monday, dragged down by weak orders for cyclical goods amid a global economic slowdown.The final au Jibun Bank Japan manufacturing purchasing managers' index was at 49.8, r
TOKYO : Japan's factory activity contracted in June after expanding for the first time in 7 months in May, a private survey showed on Monday, dragged down by weak orders for cyclical goods amid a global economic slowdown.
Output and new orders, the subindexes that constitute the majority of the headline index, fell back to contraction, ending a brief rebound buoyed by improved business confidence. New orders from overseas customers decreased at the fastest rate in four months, notably reflecting feeble demand from China, Japan's biggest trade partner.
Thanks to flourishing service-sector activities and the ultra-loose monetary policy, Japan has managed to temper the impact of worsening global economic conditions, but slowing U.S., Chinese and European economies are hurting its export-reliant manufacturing sector.
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