Japan: Manufacturing PMI climbs to 19-month high in October
October 23, 2015
The Nikkei/Markit Flash Manufacturing Purchasing Managers’ Index (PMI) jumped from September’s revised September 51.0 (previously reported: 50.9) to 52.5 in October. The print marked the highest reading since March 2014 and, as a result, the index is moving further above the 50-threshold that separates expansion from contraction in the manufacturing sector.
October’s result could contribute to ease concerns about the state of the economy, after a streak of weak data recently unveiled. Nikkei/Markit analysts stated that, “latest survey data indicated a marked improvement in operating conditions at Japanese manufacturers. Production increased at the joint-sharpest rate since February and was marked in the context of historical data. Meanwhile, growth in total new orders accelerated to the highest in over one-and-a-half years, underpinned by a solid increase in international demand. Subsequently, both employment and buying activity rose during the month, offsetting the declines seen in September."