Japan: Upward trend in manufacturing PMI continues in December
December 15, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from November’s revised 51.3 (previously reported: 51.1) to 51.9 in December. The index, which marked the highest reading since the start of the year, sits comfortably above the 50-threshold that separates expansion from contraction in the manufacturing sector.
December’s result reflected that output and new orders recorded healthy expansions, while the employment category jumped to a nearly three-year high. Input prices expanded at the fastest pace in 10 months, pushing cost inflationary pressures to a 13-month peak. The uptick in prices mostly reflects steep increases in raw materials. Overall, the improvement in the manufacturing sector reflects an improving global outlook and the weakening of the yen.