Japan: Manufacturing PMI hits seven-month high in August
August 21, 2015
The Nikkei/Markit Flash Manufacturing Purchasing Managers’ Index (PMI) rose from 51.4 in July to 51.9 in August. The print represented a seven-month high. As a result, the index moves further above the 50-threshold that separates expansion from contraction in the manufacturing sector.
August’s result reflected faster growth in new orders and stocks of purchases. Conversely, the pace of growth in output and employment softened in the same month. Nikkei/Markit analysts stated that, “latest survey data indicated a further improvement in operating conditions in the Japanese manufacturing. New-order growth accelerated to the second fastest this year so far, while production increased at a similar pace to July’s five-month record. In contrast, new orders from abroad rose at a slower pace, with reports of reduced sales volumes with China dampening international demand. Meanwhile, input prices declined for the first time since November 2012, albeit at a marginal rate.”