The manufacturing activity of Japan increased in September at its fastest pace within four months, along with the expansion of exports and domestic orders, indicated in a preliminary private survey on Monday, and further showed some signs of strengthening demand. The Markit/Nikkei Japan Manufacturing Purchasing Managers’ Index (PMI) was able to grow to a seasonally adjusted 52.6 for this month versus the previously 52.2 in the month of August. The PMI remained on top of the threshold 50 that detaches expansion contraction from the 13th consecutive month and drove towards its highest level in May. Annabel Fiddes, a principal economist at IHS Markit, conducted the survey and said that “Firms signaled stronger expansions in both output and new orders amid reports of firmer demand both at home and abroad.” Fiddes also mentioned that the third quarter ended strong which provided positive signs for production for the following months, as business confidence picked up marginally since last month. New export orders index expand from 51.3 to 53.1 initially. The flash index for new orders climbed to 52.5 versus 51.9 results in August. PMI index output component further grew since August. The PMI survey adheres with government figures issued last week, as Japanese exports in August perked up at its fastest in almost four years caused by the strong international demand. There is more evidence offered that shows Japan’s economy will continue growing.
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