Japan's Manufacturing PMI Rises to Three-Month High
(Bloomberg) -- Japan’s manufacturing sector added strength in September, which should further allay concerns about slowing growth in a sector that has been in expansion for two years.
The Nikkei Japan Purchasing Managers Index for manufacturers showed a preliminary reading of 52.9 in September, up from 52.5 in August. New orders came in at 53.3, up from 52.4. A reading above 50 indicates the sector is expanding, while one below that signals a contraction.
"Business conditions remained robust despite a number of natural disasters over the past month," said Joe Hayes, an economist at IHS Markit, which compiles the survey.
Still, business sentiment dipped further to a 22-month low due to uncertainty about how international trade tensions could impact the Japanese economy, he wrote in the data release.
While Japan’s economy started the year with a contraction, robust business investment helped drive growth at the fastest pace in more than two years during the second quarter. The economy looks to be on solid footing during the current period, despite a series of national disasters.
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