Japan Manufacturing PMI Sinks To 48.8 In January - Jibun

(RTTNews) - The manufacturing sector in Japan continued to contract in January, and at a faster pace, the latest survey from Jibun Bank revealed on Friday with a manufacturing PMI score of 48.8.

That's down from 49.6 in December and it moved further beneath the boom-or-bust line of 50 that separates expansion from contraction.

Production levels fell modestly, and at the strongest rate since last April, while new order inflows fell at a moderate pace that was the quickest in six months. Employment levels increased for the second month running at the start of the year, enabling firms to deplete backlogs.

The survey also showed that the services PMI improved to 52.7 in January from 50.9 in December.

Japanese service providers raised employment levels, despite confidence levels that were broadly similar to the end of last year.