Japan: Manufacturing PMI hits seven-month high in October
September 24, 2014
The Markit/JMMA Flash Manufacturing Purchasing Managers’ Index (PMI) jumped from 51.7 in September to 52.8 in October. The print reached the highest level since March of this year. As a result, the PMI is moving further away from the 50-threshold that separates an expansion from a contraction in the manufacturing sector, at which it has idled in the last five months.
The improvement reflected better readings in almost all the sub-categories of the index, thereby suggesting healthy dynamics in the country’s all-important manufacturing sector. Only the suppliers’ delivery times lost ground over the previous month’s figure. New orders expanded at the fastest pace since February and output, despite the increase, remained in modest growth territory. That said, Markit/JMMA analysts stated that, “given the upcoming decision regarding the second planned increase of the sales tax to 10%, questions will turn to the sustainability of the upturn in growth over the coming months.”