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Economy

Japan manufacturers log largest profit downgrade in 7 years

Forecasts trimmed by $8.6bn as China's slowdown hits auto and equipment makers

A worker at a Japanese precision mold  maker. The country's manufacturers have been hit by falling global corporate investment.

TOKYO -- A total of 125 Japanese manufacturers have revised down their net profit forecasts for the current fiscal year by a sum of 939.3 billion yen ($8.6 billion), the largest collective downgrade in seven years, data compiled by Nikkei shows.

The wave of profit warnings stands in contrast to the upbeat forecasts of the nonmanufacturing sector, such as IT and services, and highlights the ripple effects of sluggish economic growth in China and other parts of the world. 

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