TOKYO, July 31 Japanese manufacturing activity
in July grew at the slowest pace in four months in a sign that
firms are curbing production due to slowing growth in exports.
The Markit/JMMA Japan Manufacturing Purchasing Managers
Index (PMI) fell to a seasonally adjusted 50.7 in July from 52.3
The index remained above the 50 threshold that separates
expansion from contraction for a fifth consecutive month, but
showed that growth had slowed to the lowest level since March.
"After a promising second quarter, Japan's manufacturing
expansion slowed in July," said Claudia Tillbrooke, economist at
"The decelerating growth of output and new orders, combined
with falling employment, painted a less encouraging picture than
that indicated by previous surveys."
The index for new export orders fell to 51.1 from 52.1 in
the previous month.
The output component of the PMI index also fell in July to
50.8 from 52.7 in June to mark the slowest growth in five
Data on Tuesday showed Japan's industrial output fell at the
fastest pace in more than two years in June as companies curbed
production to avoid a build up in inventories, but an improving
labour market suggested the economy was on track for gradual