Japan PMI Manufacturing was finalized at 47.7 in September, up from August’s 47.3. That’s the highest level since February, but it’s, nonetheless, still a contractionary reading. There were slower falls in output and new orders while business expectations continue to recover.
Tim Moore, Economics Director at IHS Markit, said: “Subdued business conditions persisted across the Japanese manufacturing sector in September, but there were signs that the downturn has lost intensity. The latest declines in output and new orders were the slowest since the first quarter of 2020 and much softer than seen earlier in the pandemic. Some manufacturers noted that a turnaround in export sales to clients elsewhere in Asia had helped to offset some of the demand weakness across Europe and the United States.
“The most encouraging aspect of the latest survey was a sustained rebound in business optimism from the low point seen during April. More than twice as many manufacturers plan to boost production in the next 12 months as those that forecast a decline, which pushed the survey measure of business expectations to its highest since May 2018.”
