Japan's June PMI falls

The PMI in June edged lower, from 49.8 to 49.5.  If the PMI is below 50%, that's usually taken to mean that growth/sales/production etc., are declining.  The smoothed line I've fitted to the data is still falling, but more slowly.  One might be tempted to suggest the worst is over, but IHS Markit's report is bleak: 

• Fastest drop in new orders since June 2016

• Resilient  output  trend  in  June  as  manufacturers reduce backlogs of work to greatest extent since January 2013 [i.e. future output will be reduced]

• Subdued client confidence in the wake of US-China trade frictions w[as] often cited by survey respondents. 

• Disappointing  sales  volumes  also  led  to  the  largest accumulation  of  finished  goods  inventories  for  over  six-and-a-half  years. [I.e., future output and sales need to be reduced to eliminate this unwanted build up] 

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