[Weak overseas demand and rising tariff concerns
Japan's manufacturing activity shrank for the 10th consecutive month] The final value of Japan's manufacturing purchasing managers' index (PMI) in April rose slightly to 48.7 from 48.4 in March, indicating a mild contraction in the business environment. The figure was slightly higher than the initial value of 48.5, but it was below the boom-bust watershed of 50.0 for the 10th consecutive month. "In April, the business environment for Japan's manufacturing industry continued to weaken," said Annabel Fides, deputy director of economics at S&P Global Market Intelligence. The new orders index shrank at the fastest rate since February 2024. The companies surveyed mentioned that consumer spending was sluggish and demand for products such as semiconductors and mechanical equipment fell. Business confidence fell to its lowest level since June 2020 due to concerns about the global outlook and tariffs. "Unless there is a significant improvement in both domestic and foreign demand, it may be difficult for companies to see an economic recovery," said Fides.
