Economics
Japan’s Economic Activity Drop Sounds Alarm on Global Growth
- Service industry activity falls at record pace, PMI data shows
- Manufacturing sector at weakest since global financial crisis
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Activity in Japan’s economy shrank sharply in March, adding to domestic and global recession fears as the impact of the coronavirus slams supply chains, shutters factories and keeps shoppers and tourists at home.
A gauge of Japan’s service sector activity slid sharply to a record low of 32.7, according to preliminary purchasing managers data. The au Jibun Bank Japan purchasing managers index for manufacturing also fell to 44.8 in March, indicating the strongest contraction in the factory sector since April 2009. PMI readings below 50 signal activity is contracting.