TOKYO (dpa-AFX) - The manufacturing sector in Japan fell into contraction in May, the latest survey from Nikkei revealed on Monday with a manufacturing PMI score of 49.8.
That's down from 50.2 in April, and it slips beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, domestic and external demand conditions deteriorated, while firms slowed the rate of hiring amid workforce cutbacks.
Output expectations turned negative for the first time since November 2012.
Despite lower quantity of purchases at Japanese manufacturers, supply chain pressures were maintained in May, with delivery times lengthening.
Copyright RTT News/dpa-AFX