Japan: Manufacturing PMI gains ground in August
August 21, 2014
The Markit/JMMA Flash Manufacturing Purchasing Managers’ Index (PMI) increased from a revised 50.5 in July (previously reported: 51.5) to 52.4 in August. The gain in August reversed the loss tallied in July and the PMI is now further above the 50-threshold that separates an expansion from a contraction in the manufacturing sector.
The monthly improvement mostly reflected a return to growth in manufacturing output, as well as continued positive performance in new orders, new export orders and payrolls. According to Markit/JMMA, “it would seem that the Japanese economy is recovering from the rise in the sales tax and showing more resilience than 17 years ago when a similar tax hike was implemented.”