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Japan’s Manufacturing PMI Grew Due to Rise in New Export Orders in October


October, 24 2018
watermark Economic news

Japan’s manufacturing activity grew in October at the quickest rate in about half a year as new exports orders recovered, according to the preliminary survey on Wednesday. It shows how careful most companies from a trade war.

The Flash Markit/Nikkei Manufacturing Purchasing Managers’ Index (PMI) increased to 53.1 seasonally adjusted in October from the final output of 52.5 in September. It still over the 50 mark, separating contraction from expansion for more than two years and reached the highest number since April.

Export sales grew for the first time since May despite various problems because of a global trade war, according to Joe Hayes, an economist at IHS Markit.

Next month output is significant to confirm if the recovery is just for a short period of time and weakening due to recent natural disasters.

The preliminary new export orders index increased to 51.7 from a final 49.8 in September.

The confidence of Japanese manufacturers increased in October from September but will continue to be flat in the next three months based on the Reuters Tankan survey last week.

There are still risks involved with how trade deal between the United States and China will affect the global economy as they retaliate tariffs with each other in the past months and the planned bilateral trade talk is on hold.

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