Wrapping up the PMIs from Japan for the month
Services 26.5
- preliminary 25.3
- prior 21.5
Composite 27.8
- preliminary 27.4
- prior 25.8
Ugly results again.
Joe Hayes, Economist at IHS Markit:
- economic activity continued to sink at a rate which had previously been unrivalled before the coronavirus crisis began.
- Social distancing and reduced tourism are clearly having a severely negative impact on the service sector, and these factors are likely going to limit the speed and strength of any recovery as they continue over the short-to-medium term.
- Taking into consideration the April reading, which was even worse, it is clear that the impact on second quarter GDP is going to be enormous.
