Japan: Manufacturing PMI rises in August
August 23, 2017
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from July’s revised 52.1 (previously reported: 52.2) to 52.8 in August. As a result, the index remains above the 50-threshold that separates expansion from contraction in the manufacturing sector.
August’s result reflected that both output and new orders expanded at a stronger pace than in July. Moreover, purchasing activity gained ground in the same month as well as new employment. With input costs expanding at a faster rate, firms increased the rate of prices charged to consumers. Paul Smith, Senior Economist at IHS Markit highlights that, “expansion continues to be supported by a mix of strengthened demand from both domestic and external sources: public work projects and stronger sales to South East Asia were both reported by panellists as areas of growth in August.”