Japan manufacturing PMI picks up to 4-month high in September

Japan’s manufacturing PMI picked up to a 4-month high during the period of September, while the manufacturing output index also posted its strongest growth in about four months.

The Flash Japan Manufacturing PMI rose to a four-month high of 52.6 in September, from 52.2 in August. Further, flash Manufacturing Output Index at 53.5 (52.5 in August), showing the strongest growth in four months. Export sales expand at faster pace, but rate of job creation softened to ten-month low.

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.

"Firms signalled stronger expansions in both output and new orders amid reports of firmer demand both at home and abroad. The strong end to Q3 bodes well for production in the coming months, with business confidence also perking up slightly since August," said Annabel Fiddes, Principal Economist at IHS Markit.

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