Japan: Manufacturing PMI jumps to nearly three-year high in January
January 24, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from December’s revised 52.4 (previously reported: 51.9) to 52.8 in January. The result, which marked the highest reading since March 2014, sits comfortably above the 50-threshold that separates expansion from contraction in the manufacturing sector.
January’s result reflected that new orders and employment expanded at faster rates than in December. Output remained strong, although it decelerated slightly compared to December’s tally. Input prices continued to rise, pushing cost inflationary pressures to the highest point since March 2015. The uptick in prices mostly reflects steep increases in raw materials prices. Overall, the economy is benefiting from higher foreign demand for Japanese goods.