Japan’s Factory Activity Shrinks at Fastest Pace in 2–1/2 Years: PMI

An employee works at a beer production line at Japanese brewer Kirin Holdings' factory in Toride, Ibaraki Prefecture, Japan, on July 14, 2017. Kim Kyung-Hoon/Reuters

TOKYO—Japan’s manufacturing activity contracted at the fastest pace in 30 months in February, a business survey showed on Tuesday, in a worrying sign for the world’s third-largest economy, which is facing weakening demand and struggling to tame cost pressures.

The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) fell to a seasonally adjusted 47.4 in February, from a final 48.9 in the previous month.