Japan: Manufacturing PMI recedes slightly at the outset of the year
January 22, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) eased marginally from December’s revised 52.6 (previously reported: 52.5) to 52.3 in January. Nevertheless, the index remains comfortably above the 50-threshold that separates expansion from contraction in the manufacturing sector.
January’s still-resilient print suggests that Japan’s economy entered this year in a solid footing. Nikkei analysts stated that, “the start of 2016 was largely positive for the Japanese manufacturing sector, with latest data pointing to a solid improvement in operating conditions. Production rose at a rate little-changed from December’s joint 21-month record. In contrast, new order growth eased to a six-month low. Data suggested that the slowdown in total new order growth was mainly attributed to the domestic market, as international demand rose at a faster rate. Meanwhile, input prices fell for the first time in over three years linked to the declines in raw material costs, particularly oil- and metal-related items.”