Bad numbers from the Japanese PMI (most of the other big PMI readings start coming out tonight).
July data from Markit/JMMA showed manufacturing output falling at the sharpest rate in 15 months, as
both new orders and new export business decreased at accelerated rates. A second successive month-on-month decline in purchasing contributed to the strongest improvement in vendor
performance since June 2009, while a sharp drop in backlogs of work highlighted growing levels of
spare capacity within the sector. On the price front, output charge discounting continued, while average
costs declined at the steepest pace in 32 months.
In the survey, manufacturers cited weakness from the big three: China, Europe, and the United States.
Here’s the chart: