The manufacturing sector in Japan continued to contract in June, albeit at a slower pace, the latest survey from Jibun Bank revealed on Wednesday with a manufacturing PMI score of 40.1.
That's up from 38.4 in May, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, firms operated below full capacity dur to slow-moving order books.
Export demand continued to decline as Covid-19 disruptions lingers, although business sentiment rebounded into positive territory.
There were some mentions of an increase in demand from China.