TOKYO, July 24 (Reuters) – Japan's manufacturing contract contracted in July for the third month in a slower pace than in the previous month, the preliminary results of Markit's survey manager's sales manager / Niick.
The data released on Wednesday, however, points to rebound in service sector activity, providing relief to the Japanese economy in a context of Sino-US. There. Trade conflict and diplomatic tensions between Tokyo and Seoul have shifted to the business terrain.
The flash version of the manufacturing PMI was 49.6 in July on a seasonally adjusted basis, which rebounded from June (49.3).
However, it remains below 50 for the third consecutive month, which separates contraction and expansion from activity.
Industry production and new orders are declining again, highlighting press releases against the Japanese economy, which is heavily dependent on exports to China and the United States.
"China's weak demand remains a key factor in explaining the sluggish demand for Japanese products," said IHS Markit economist Joe Hayes, the company leading the survey.
"With growing tension between Japan and South Korea, there is an increased risk of manufacturing supply chain in Japan, causing a slowdown that the service sector may have to compensate again," he added. -Es.
According to separately published data, the flash version of the PMI Services Index rose to 52.3 in a seasonally adjusted basis in July, compared to 51.9 last month's previous month.
This is its highest level since last February.
The Composite PMI, which includes the Manufacturing and Services sectors, rose in June to 51.2 from 50.8 in June. (Daniel Leussink, Jean Tersian for French Service)