Japanese mannufacturing activity deteriorated in June with new orders registering sharpest drop since June 2017. 

The IHS Markit Flash Japan Manufacturing Purchasing Managers’Index edges down to 49.5 in June, from 49.8 in May. The markets were expecting the PMI to print at 50.00. A reading below 50 indicates contraction. 

Key points (source: markiteconomics.com)

• Fastest drop in new orders since June 2016
• Resilient output trend in June as manufacturers reduce backlogs of work to greatest extent since January 2013.                                                                                                                
• Disappointing sales volumes also led to the largestaccumulation of finished goods inventories for over six- and-a-half years.