Reuters, TOKYOJapan’s factory activity suffered its steepest contraction in seven years this month, as the widening fallout from the COVID-19 outbreak in China reinforced the risk of a recession in the world’s third-largest economy. The Jibun Bank Flash Japan Services Manufacturing Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 47.6 from a final 48.8 last month, its lowest since late 2012. The Jibun Bank Flash Japan Services PMI index shrank at its fastest pace in nearly six years, again due to the virus’ debilitating impact across the sector. It slumped to 47.0 this month, also hitting its lowest since April 2014 and down from the previous month’s final of 50.1. “February flash PMI data stack the odds heavily against Q1 growth, despite [Japanese Prime Minister Shinzo] Abe’s best efforts to stimulate the economy after the sales tax hike,” Hayes said.

Source: Taipei Times February 21, 2020 15:56 UTC