Japan's manufacturing sector resumes expansion

Flash Japan Manufacturing PMI™ at 50.3 in September (49.5 in August). Manufacturing conditions improve marginally for the first time in seven months. Flash Japan Manufacturing Output Index at 50.7 (50.2 in August). Production increased for the second month running.

Today sees the latest public release of the Nikkei Flash Japan Manufacturing Purchasing Managers' Index™ (PMI™). Published on a monthly basis approximately one week before final PMI data are released, this makes the PMI the earliest available indicator of manufacturing sector operating conditions in Japan. The estimate is typically based on approximately 85%-90% of total PMI survey responses each month and is designed to provide an accurate indication of final PMI data.

Commenting on the Japanese Manufacturing PMI survey data, Amy Brownbill, economist at IHS Markit, which compiles the survey, said: "Manufacturing conditions in Japan improved for the first time since February at the end of Q3. Production increased for the second month running, while international demand picked up for the first time since the start of 2016. As a result, goods producers were more optimistic towards taking on additional staff, with job creation accelerating to a four-month high. Manufacturers also benefitted from lower cost burdens, with input prices declining for the ninth consecutive month."