EWJ - Japan factory activity shrinks in July constrained by weak demand

2023-07-24 00:57:00 ET

• The au Jibun Bank Japan Manufacturing PMI fell to 49.4 in July 2023 from a final 49.8 in May, a flash figure showed.

• It was the lowest reading since March, also marking the sixth time of contraction in factory activity so far this year, as new orders fell the most since March while output, foreign sales, and buying levels all continued to shrink despite their rates of decline softening from the prior month.

• Meantime, employment growth eased, while backlogs of work decreased at a softer rate and delivery time pointed to a weaker improvement.

• Concurrently, sentiment eased yet remained at the joint-second highest level seen since the start of 2022.

• Japan Services PMI edged down to 53.9 in July 2023 from a final of 54.0 a month earlier, preliminary data showed.

• While marking the 11th straight month of growth in the services sector, the latest result was the lowest print since January, with the expansion in incoming business being modest, and the slowest recorded for six months.

• Japan Composite PMI was 52.1 in July 2023, unchanged from a final 52.1 in the prior month, flash data showed.

• This was the seventh straight month of growth in private sector activity but remained at the softest pace since February amid lingering global economic uncertainty, with the services sector growing for the 11th straight month while manufacturing activity contracted for the sixth time so far this year.

• ETFs: ( JEQ ), ( EWJ ), ( DXJ ), ( FXY ).

• More on Japan's economy:

• Japan's core inflation rate accelerates in June but stays above BOJ's target

• Japan logs its first trade surplus in almost two years in June

• Japan Services PMI revised downward to 54.0 in June, but stays in expansion territory

• Bank Of Japan Keeps Policy Settings Unchanged - For Now

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