Japanese manufacturing activity rises at fastest pace since March 2014
Japanese manufacturing activity expanded in October at its fastest pace since March 2014 as new domestic and export orders increased, a preliminary business survey showed on Friday.
Flash Japan Manufacturing PMI (purchasing managers' index) rose to 52.5 (51.0 in September) — the highest level in over one-and-a-half years. Flash Japan Manufacturing Output Index was at 52.2 (50.7 in September) — 50 is the no-change level. Growth in production accelerated to three-month high.
Published on a monthly basis approximately one week before final PMI data are released, this makes the PMI the earliest available indicator of manufacturing sector operating conditions in Japan. The estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of final PMI data.
Amy Brownbill, economist at Markit, which compiles the survey, said: “Latest survey data indicated a marked improvement in operating conditions at Japanese manufacturers. Production increased at the joint-sharpest rate since February and was marked in the context of historical data.
Meanwhile, growth in total new orders accelerated to the highest in over one-and-a-half years, underpinned by a solid increase in international demand. Subsequently, both employment and buying activity rose during the month, offsetting the declines seen in September."