Japanese manufacturing activity rebounded modestly in May as output and new orders picked up, suggesting a much-needed improvement in demand at home and abroad. The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 50.9 in May from a final 49.9 in April.
The index returned above the 50 threshold that separates contraction from expansion for the first time in two months. The output index also rose to a preliminary 51.7 in May, after shrinking in April.
New orders rose to a preliminary 51.2 from 48.8 in April, ending two months of declines. New export orders rose modestly to 50.5 from a final 50.3 in the previous month, but expanded for the 11th consecutive month. The final Markit/JMMA PMI for May will be released on June 1.
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