Earthquakes in Japan seriously impair industrial activity

Industrial activity in Japan accelerated its decline in April, as the PMI index Markit/Nikkei fell to its lowest level since January 2013 onwards, or to 48 points. Markets predicted a growth of 49.1 to 49.6 points.

According to analysts, the disappointing performance of the sector has been affected by the earthquakes in Kumamoto, which led to the restraint of production capacity.

Component, tracking production, retreat from 49.8 to 47.9 points, marking the strongest contraction of the indicator since April 2014.  New orders also weakened significantly - from 48 to 44.6 points, while new export orders reached their minimum since December 2012, or 44 points.

"After the devastating earthquake, the prospects for the Japanese manufacturing sector seem particularly uncertain." - said economist at Markit Amy Braunbil.