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Growth in Japan's manufacturing activity softened for the second month in a row in July, a preliminary private survey revealed on Monday, with export demand deteriorating.
The Markit/Nikkei Japan Flash Manufacturing Index (PMI) dropped to 52.2 in July on a seasonally adjusted basis from a final 52.4 in June. The current reading was at an eight-month low, however, it remained above the 50 threshold which divides growth from contraction for the 11th straight month.
The preliminary index for new export orders dropped to 50.0 from 53.4 in June.
The output component dropped to 51.4 from a final 52.2 in June.
Bucking the trend was the employment index which climbed to a preliminary 53.4 from 53.2 in the month earlier.
The index which gauges expectations for future output increased to a preliminary 63.0 this month, the strongest since Markit started collecting this particular data nearly five years ago.
