Japan's July factory activity extends declines into third quarter as demand sags: PMI

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Japan's July factory activity extends declines into third quarter as demand sags: PMI
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Japan's factory activity contracted for a 15th straight month in July, indicating the economic pain from the coronavirus crisis extended into the third quarter of the year as hopes for a quick global recovery fade.

TOKYO - Japan’s factory activity contracted for a 15th straight month in July, indicating the economic pain from the coronavirus crisis extended into the third quarter of the year as hopes for a quick global recovery fade.

“The Japanese economy continued to struggle at the start of the third quarter,” said Joe Hayes, economist at IHS Markit, which compiles the survey. Japan’s economy is forecast to shrink 5.3% this fiscal year, the largest contraction since comparable data became available in 1994, followed by a 3.3% bounce next year, a Reuters poll of over 30 economists showed.

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