Joe Hayes

The sector was plagued by production cutbacks and flagging demand, which have been the trends so far in 2019, softer growth across Asia, particularly in China, was reported to have dented export opportunities.

There were some signs that the underlying services economy was beginning to lose momentum, with employment and new business growth both easing, optimism moderated as some firms were concerned that the looming consumption tax hike could impact demand.

The likelihood of the negative trend in output being stymied any time soon appears slim, with demand for goods from both domestic and international sources waning further, asian goods producers face headwinds from slowing growth in Europe and China, while global trade risks are yet to be mitigated by a breakthrough in US-Sino relations.

Japan manufacturing PMI data continue to signal that the sector's current expansion phase still has legs, concerns do remain however, as new order growth eased to a ten-month low and export sales decreased for the first time since August 2016.

Near-term prospects for Japan's industrial sector appear very bleak.