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Trading news
24 Apr 2015
Japan manufacturing slowdown temporary, but risk of weaker-than-expected growth – Nomura
FXStreet (Barcelona) - Research Analysts at Nomura, reviews the Japanese manufacturing PMI data release, and further see the pull back in activity as a short-lived phenomenon.
Key Quotes
“The headline Japanese manufacturing PMI for April 2015 came in at 49.7, down 0.6pt from March's 50.3. This represents a third straight month of decline, and also sees the index fall below 50, the watershed between economic expansion and contraction. The PMI shows an obvious slowdown in manufacturing activity in March and April.”
“While the new export orders index is still above the watershed of 50, it is clearly losing steam. Looking ahead, we now see risk of Japanese economic growth falling short of our expectations. However, we also think Japanese exports are likely feeling the impact from a temporary slowdown in the US economy due to unfavorable weather and port strikes on the US West Coast, and we assume the pullback in Japanese manufacturing activity will be a short-lived phenomenon.”
Key Quotes
“The headline Japanese manufacturing PMI for April 2015 came in at 49.7, down 0.6pt from March's 50.3. This represents a third straight month of decline, and also sees the index fall below 50, the watershed between economic expansion and contraction. The PMI shows an obvious slowdown in manufacturing activity in March and April.”
“While the new export orders index is still above the watershed of 50, it is clearly losing steam. Looking ahead, we now see risk of Japanese economic growth falling short of our expectations. However, we also think Japanese exports are likely feeling the impact from a temporary slowdown in the US economy due to unfavorable weather and port strikes on the US West Coast, and we assume the pullback in Japanese manufacturing activity will be a short-lived phenomenon.”