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.
The index stayed below the 50-level that separates contraction from expansion for a fourth consecutive month and marked the largest decline since August 2020’s 47.2.
Factory output and new orders decreased for an eighth straight month and at faster rates than January, the sub-index data showed….