uploads///image

What’s Affecting Japan’s Manufacturing PMI?

By

Apr. 12 2018, Updated 12:26 p.m. ET

Japan’s manufacturing PMI in March 2018

Japan’s manufacturing PMI showed a softer rise in March as compared to February 2018. It stood at 53.1 in March as compared to 54.1 in February 2018. The PMI figure was slightly below the preliminary market estimate of 53.2 and represented the slowest expansion in manufacturing activity since October 2017.

Japan’s manufacturing PMI in March 2018 was primarily affected by the following factors:

  • Production volume and output rose at a softer pace in March 2018. The expansion in factory output was the slowest since October 2017.
  • New orders and export orders all rose at a softer pace in March 2018.
  • Employment in the manufacturing sector hit a three-month low.

Japan’s economic activity is hugely dependent on its exports. The rising worries about global trade war talk affected consumer sentiment around the world and affected overseas orders, which weighed on Japan’s manufacturing industry in March 2018.

Article continues below advertisement

Performance of various ETFs in March 2018

The iShares MSCI Japan ETF (EWJ) and the WisdomTree Japan Hedged Equity ETF (DXJ) fell 0.6% and 2%, respectively, in March 2018.

In the next part of this series, we’ll analyze the UK’s manufacturing PMI in March 2018.

Advertisement

More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.