The manufacturing sector in Japan continued to expand in August, and at a faster rate, a preliminary survey from Nikkei showed on Friday, with a Performance of Manufacturing Index score of 51.9.
That’s up from 51.2 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
“Latest survey data indicated a further improvement in operating conditions in the Japanese manufacturing sector. New order growth accelerated to the second fastest this year so far, while production increased at a similar pace to July’s five-month record,” said Markit economist Amy Brownbill.
Among the individual components, the output index slipped to 51.9 from 52.2 in July. Growth in production was little changed from July’s five-month high.
The indexes for new orders and stocks of purchases increased at a faster rate, while new export orders and employment increased at a slower rate.
Backlogs of work and output prices moved to expansion after contracting in July, while input prices, stocks of finished goods and quantity of purchases all turned to contraction.
Supplier delivery times lengthened at a great rate.
“New orders from abroad rose at a slower pace, with reports of reduced sales volumes with China dampening international demand. Meanwhile, input prices declined for the first time since November 2012, albeit at a marginal rate,” Brownbill said.
The material has been provided by InstaForex Company – www.instaforex.com