Japanese Manufacturing PMI At 3-Year High In September

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Japan's seasonally adjusted Nomura/ JMMA purchasing manager's index or PMI for the manufacturing sector climbed to 54.5 in September from 53.6 in August, remaining in expansion for the third consecutive month, a report by Markit Economics said Wednesday. Moreover, this was the most marked improvement in the manufacturing operating conditions in three years.

A reading above 50 indicates expansion, while a reading below 50 signals a contraction.

Production expanded for the fourth consecutive month and at the fastest pace since February 2006, reflecting rising sales volumes and new product developments. Incoming new business received by Japanese manufacturers expanded for the third consecutive month, and was also at the most marked pace in 43 months. New export orders increased at the fastest pace in 31 months, reflecting increased new work from China.

Staffing levels in the manufacturing sector continued to fall for the 14th consecutive month, but the latest pace of job cuts being the second-weakest in the last few months.

With regard to prices, output prices fell for the tenth successive month in September, mainly due to stronger competitive pressures and requests for discounts from clients. Input prices fell further in September. However, the pace of reduction eased to the second-weakest in the current sequence of deflation, which now extends to ten months, Markit said. The decline in input prices was mainly due to a fall in raw material prices, particularly that of steel.

(Market News Provided by RTTNews)