Japan Manufacturing Contracts in First Sign of Quake Impact

Japan’s manufacturing deteriorated at the fastest pace in at least nine years in March, underscoring forecasts for the economy to shrink in the aftermath of the March 11 earthquake.

The index of purchasing managers fell to 46.4 from 52.9, the Japan Materials Management Association and Markit Economics said in a joint release today, the biggest drop since the survey began in October 2001. A number below 50 indicates a contraction.