TOKYO Japan’s manufacturing activity grew at the slowest pace in eight months in February as new orders contracted in a worrying sign that domestic demand and overseas demand are deteriorating as the global economy weakens, a revised survey showed on Tuesday.
The Markit/Nikkei Final Japan Manufacturing Purchasing Managers Index (PMI) fell to 50.1 in February on a seasonally adjusted basis, less that a flash reading of 50.2 and a final 52.3 in January.
It remained above the 50 threshold that separates contraction from expansion for the 10th consecutive month, but the rapid slowdown from the previous month could be a cause of concern for policymakers.
The index for new orders was 49.5, less than a preliminary 49.9 and below 52.8 in the previous month, to show the fastest contraction since April last year.
Japan’s economy contracted more than expected in the fourth quarter due to weak household spending and exports.
Renewed worries about the global economy means Japan’s consumer spending and corporate activity could remain weak for some time, which would jeopardize Japan’s gross domestic product growth, some economists say.
(Reporting by Stanley White; Editing by Sam Holmes)
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