Japan: Composite PMI jumps to a four-month high in January
January 24, 2020
A flash reading of the Jibun Bank composite Purchasing Managers’ Index (PMI) showed an increase to 51.1 in January from a revised 48.6 in December (previously reported: 49.8). The index therefore displayed growth in the Japanese private-sector economy in January from the previous month, after showing a contraction in December.
The services sector continued to lead the way in January, with the PMI hitting 52.1, up from 49.4 in December, as stronger increases in new business and employment were recorded, while output charges also moved into inflation territory.
The manufacturing sector, however, languished in January, with the PMI logging 49.3, up from 48.8 in December but evident of a contraction in the manufacturing sector.
Commenting on the reading, Joe Hayes of IHS Markit said: “While official data are yet to confirm it, the fourth quarter looks on track to register and ugly decline in GDP. The January flash numbers will certainly allay fears for now of an impending technical recession in Japan.”
Author: Edward Gardner, Economist