Japan: Manufacturing PMI hits six-month high in August
August 23, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from July’s revised 49.3 (previously reported: 49.0) to 49.6 in August. August’s print marked the highest reading in six months. Despite the increase, the index remains slightly below the 50-threshold that separates expansion from contraction in the manufacturing sector.
August’s increase was the result of an expansion in output for the first time in six months and a weaker decline in new orders. However, the employment category recorded a decline for the first time in nearly one year. Nikkei analysts added that, “furthermore, relatively weak client demand alongside a strong yen prompted firms to cut their selling prices at the sharpest rate since October 2012 as part of efforts to attract new business.”