POSSIBLE TURNING POINT FOR THE NIKKEI 2/3

The latest PMI leading indicators reveal a two-speed economy with uncertain momentum. While the composite PMI remains in expansionary territory, this performance is driven by the solid services sector, which acts as the main engine of activity. In contrast, the manufacturing sector remains in contraction territory, a weakness corroborated by a persistent decline in industrial production. This highlights the precariousness of the current recovery, which relies on a single pillar of strength.