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

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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