Japan Manufacturing PMI in January 2018
The Japan Manufacturing PMI (Purchasing Managers’ Index) improved sharply in January 2018. It stood at 54.8 in January 2018 compared to 54 in December 2017. The PMI figure beat the preliminary market estimate of 54.4. It was the highest expansion in manufacturing activity since February 2014.
The sharp rise in the Japan Manufacturing PMI in January 2018 was mainly due to the following:
- Production volume and output improved at a faster rate in January 2018.
- New orders and export orders accelerated at a faster rate in January 2018.
- Employment in the manufacturing sector continued to improve in January 2018 for the sixth consecutive month.
Stronger improvement in Japan’s economic activity is mainly due to the solid rise in client demand. Stronger export orders from major Asian economies, including India, China, and Indonesia, mainly drove manufacturing activity.