Japan’s PMI Rises to Expansion in May

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.

Japan’s economy expanded in January-March at the fastest pace in a year, but much of the growth came from inventories, data showed on Wednesday.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza