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Economic Buzz: Japan manufacturing PMI weakens further in March
24-Mar-2025 07:18
The manufacturing sector in Japan continued to contract in March, and at a faster pace, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 48.3.

That's down from 49.0 in February, and it moved further beneath the boom-or-bust line of 50 that separates expansion from contraction.

Though modest, the rate of decline was the quickest seen in a year, with firms registering steeper falls in both production and new orders. As a result, companies cut back solidly on purchasing activity and continued to trim their inventories. Employment was a bright spot, with firms adding to their workforce numbers for the fourth straight month.

The services sector also slipped into contraction, falling to 49.5 in March from 53.7 in February.

Though marginal, it was only the fourth time that business activity had fallen in the past three years. The fall coincided with a notably softer rise in overall new work, with some companies mentioning that client spending was relatively subdued due to cost concerns. Despite the loss of momentum in sales, firms continued to expand their staff numbers amid reports of business expansion plans.

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