Japan: Manufacturing PMI falls in September
September 24, 2015
The Nikkei/Markit Flash Manufacturing Purchasing Managers’ Index (PMI) declined from August’s seven-month high of 51.7 to 50.9 in September. Despite September’s drop, the index is resting above the 50-threshold that separates expansion from contraction in the manufacturing sector.
September’s result reflected slower growth in new orders and declines in employment and stocks of purchases. On the other hand, new orders accelerated in September. Nikkei/Markit analysts stated that, “September PMI data pointed to a general slowdown in the expansion of the Japanese manufacturing sector. New order growth moderated, having increased in August at the fastest rate since January. Underpinning the slowdown in total new-order growth was a sharp reduction in international demand as new export orders dropped to the greatest extent for 31 months. A number of panelists blamed a fall in sales volumes from China leading to a decrease in new exports. Subsequently, employment levels declined for the first time since March.”