Insight into Japan Manufacturing PMI in February 2018



Japan Manufacturing PMI in February 2018

The Japan Manufacturing PMI showed a weaker improvement in February compared to January 2018. It was 54.1 in February compared to 54.8 in January 2018. The figure met the preliminary market estimate of 54.

The Japan Manufacturing PMI in February 2018 was mainly due to the following:

  • Production volume and output rose at a weaker pace in February. It was the slowest expansion in factory output since October 2017.
  • New orders and export orders rose at a softer pace in February.
  • Employment in the manufacturing sector rose at a faster rate and reached an 11-year high.

Weaker export orders from major Asian economies, including China, India, and Indonesia, mainly affected manufacturing activity in Japan. Since Japan’s economy depends largely on exports, weaker export orders affect economic activity. The rising concern about future global growth also affected manufacturing activity in February.

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Performances of ETFs in February 2018

The iShares MSCI Japan (EWJ) and the WisdomTree Japan Hedged Equity ETF (DXJ), which track the performance of Japan, fell 2.9% and 5.4%, respectively, in February 2018.

In the next part of this series, we’ll analyze the performance of the UK Manufacturing PMI in February 2018.


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