Japan: Manufacturing PMI hits nine-month high in October
October 24, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from September’s revised 50.4 (previously reported: 50.3) to 51.7 in October. The print marked the highest reading in nine months and the index now sits comfortably above the 50-threshold that separates expansion from contraction in the manufacturing sector.
October’s result reflected that output rose at the fastest pace so far this year and new orders returned to positive territory. The rebound in new orders was the result of a healthy expansion in orders from overseas, which signals better global trade dynamics. Overall, improving manufacturing conditions led good producers to increase their staffing levels, with the rate of job hiring picking up to a two-and-a-half year high. Manufacturers also benefitted from lower cost burdens as input prices declined again in October.