Japan's manufacturing slump deepens as two-thirds see profit fall

Trade war and China's slowdown hurt exporters from electronics to autos

20190729 TOYOTA-JAPAN/

Robots assemble Prius hybrids at a Toyota Motor plant in Japan. The slowdown among manufacturers included some of Japan's automakers. © Reuters

TOSHIHIDE TAKEDA, Nikkei staff writer

TOKYO -- More than two-thirds of listed Japanese manufacturers have reported declines in quarterly profits so far this earnings season, the broadest slump since the global financial crisis, as trade frictions and China's economic slowdown take their toll.

Because manufacturers account for about 60% of profits at Japanese listed companies, a prolonged earnings slump could weigh on the entire economy as it heads into an October consumption tax increase.

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