TOKYO (May 1): Japanese manufacturing activity contracted in April for the first time in almost a year as domestic orders and output fell, adding to fears that the economy struggling to gain traction.

The Markit/JMMA final Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 49.9 in April, compared with a preliminary reading of 49.7 and final 50.3 in March.

The index fell below the 50 threshold that separates contraction from expansion for the first time since May last year.

New orders fell to 48.8, versus a flash estimate of 48.5 and a final 49.4 in March, contracting for a second consecutive month.

The output index fell to 49.3, slightly more than the flash estimate of 49.7 in April, and the first contraction in nine months.

The index for new export orders was 50.3, less than a preliminary 51.0 and a final 52.0 in the previous month.

Japanese manufacturers said they expect their output to rise 2.1 percent in April and fall 0.3 percent in May, highlighting the uneveness in the economy, industrial production data showed on Thursday.