TOKYO (Reuters) -Japan’s manufacturing activity shrank at the fastest pace in six months in September, with sharper falls in output and new orders, a private sector survey showed on Wednesday.

Companies in the survey said soft demand among key markets such as China and U.S. tariffs weighed on business performance.

The S&P Global Japan Manufacturing purchasing managers’ index (PMI) fell to 48.5 in September from 49.7 in August, remaining below the 50.0 threshold that separates growth from contraction. This marked the most pronounced deterioration since March.

The index was little changed from the flash reading of 48.4.

Manufacturers reported a steep decrease in output, linked to reduced inflows of new work, while new business fell at the fastest rate since April.

Export orders also shr

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