Japan November flash manufacturing PMI rises to 52.8

Nov 24, 2015

Japanese manufacturing activity expanded at its fastest pace in 20 months in November, as output and new export orders picked up, a preliminary business survey showed on Tuesday.

The Markit/Nikkei Japan Flash Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 52.8 in November from a final 52.4 in the previous month.

The index remained above the 50 threshold that separates expansion from contraction for the seventh straight month. If confirmed by the final reading, November's figure would be the highest since March 2014.

The PMI suggests Japan's gross domestic product has resumed growing after data last week showed the economy fell into a technical recession in July-September due to a decline in inventories and capital expenditure.

The flash index for output rose to 53.9 from 52.4 in the previous month, the fastest gain since March 2014.

The PMI for new export orders was a preliminary 53.2 in November, above the final reading of 52.2 in October, on pace for the fastest rise since June.

The improvement seen in the sub-indexes also suggests that overseas demand may be starting to slowly shake off the affects of China's slowing economy.

Source: REUTERS