Japan: Manufacturing PMI rebounds to eight-month high in September
September 23, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from August’s revised 49.5 (previously reported: 49.6) to 50.3 in September. The print marked the highest reading in eight months and the index now sits above the 50-threshold that separates expansion from contraction in the manufacturing sector.
September’s result mainly reflected that output increased for the second consecutive month, while new orders decreased at a slower rate. New export orders jumped above the 50-threshold, suggesting that global demand is gradually improving. Moreover, as Amy Brownbill, economist at IHS Markit, points out, “goods producers were more optimistic towards taking on additional staff, with job creation accelerating to a four-month high. Manufacturers also benefitted from lower cost burdens, with input prices declining for the ninth consecutive month.”