Japan: Manufacturing PMI falls to seven-month low in February
February 20, 2015
The Markit/JMMA Flash Manufacturing Purchasing Managers’ Index (PMI) declined from the revised 52.2 in January (previously reported: 52.1) to 51.5 in February. Although the result marked a seven-month low, the PMI remains above the 50-threshold that separates expansion from contraction in the manufacturing sector.
The slight deterioration reflected slower rates of expansion in new orders and employment. Output expanded at the same rate as in January, while stocks of purchases increased at a faster rate. In addition, suppliers’ delivery times lengthened at a faster rate. Markit/JMMA analysts stated that, “the latest data signalled an improvement in operating conditions in the Japanese manufacturing sector. Despite a growth slowdown in incoming new orders, manufacturing production growth was solid and unchanged from the previous month. Meanwhile, new orders from international markets increased at the fastest rate since October 2014 - driven by the weaker yen.”