Japanese PMI Data Expands at Fastest Pace in 1 Year

Nov 2 Japanese manufacturing activity in October expanded at the fastest pace in a year as new domestic and export orders increased, a private business survey showed on Monday.

The Markit/Nikkei Japan Final Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 52.4 in October, slightly less than a preliminary reading of 52.5 but a solid improvement from the final reading of 51.0 in September.

The index remained above the 50 threshold that separates expansion from contraction for the sixth straight month. October’s performance was the strongest in a year.

The findings add to evidence that the world’s third-largest economy is recovering from a dip earlier this year as demand at home and abroad is starting to pick up.

The PMI for new export orders was 52.2 in October, just above a preliminary 52.1 and showing a return to growth from 48.0 in the previous month.

The index for overall new orders – both those at home and abroad – was 54.2 in October. This was less than the flash reading of 54.9 but still the fastest expansion in a year.

Japan’s economy contracted in April-June and there is a chance it could contract again in July-September.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.