Japan PMI manufacturing rose 0.2 to 52.5 in August, sligthly above expectation of 52.4. Markit noted in the release that “input and output price inflation at multi-year highs.” While overall demand improves, “export orders fail to rise for a third straight month”.
Commenting on the Japanese Manufacturing PMI survey data, Joe Hayes, Economist at IHS Markit, which compiles the survey, said:
“August flash data extended the current growth cycle in Japan’s manufacturing sector to two years, the longest uninterrupted stretch of expansion since the global financial crisis.
“New orders rose at a sharper rate, encouraging a solid pace of output growth and prompting businesses to raise input purchasing. That said, with export orders declining, this signalled that the latest expansionary PMI reading was underpinned by strength in the domestic market.
“Indeed, weaker international sales weighed on business confidence, with panellists citing potential trade conflicts as a key risk to their outlook over the coming year. Positive sentiment eased to the lowest level since November 2016.”
