Japan: Manufacturing PMI hits five-month high in July
July 27, 2015
The Nikkei/Markit Flash Manufacturing Purchasing Managers’ Index (PMI) rose from 50.1 in June to 51.4 in July. The print was above the 50.5 that market analysts had expected and represented a five-month high. As a result, the index remains above the 50-threshold that separates expansion from contraction in the manufacturing sector.
July’s result reflected a rebound in new orders and faster growth in output. Job conditions and stocks of purchases also improved in July. Nikkei/Markit analysts stated that, “operating conditions in the Japanese manufacturing sector improved in July. Production rose at the quickest rate since February, while new order growth was the second-strongest this year so far. Subsequently, employment rose at the fastest rate since December 2014 and buying activity growth resumed. Meanwhile, reports of the falling yen against the dollar led to greater cost pressures, as input price inflation was the strongest in three months. That said, the rate of inflation remained weak in the context of historical data.”