Why Japan’s Manufacturing PMI Improved in April



Japan’s manufacturing PMI in April

Japan’s manufacturing PMI witnessed improvement in April compared to March. It stood at 53.8 in April compared to 53.1 in March. This PMI figure met the preliminary market estimate of 53.3.

Japan’s manufacturing PMI in April was mainly due to the following factors:

  • Production volume and output rose at a higher rate in April compared to March. Factory output also improved at a faster rate in the month.
  • New orders rose at a faster pace in April. However, export orders rose the least in that month in the past 20 months.
  • Employment in the manufacturing sector also grew the most in April.

Consumer buying activity picked up in April, and the business confidence index rose strongly in the same month. Potential trade war worries affected the economy’s export orders in that month. Despite this issue, domestic demand improved strongly in the economy and helped its manufacturing activity.

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Performance of various ETFs in April

The iShares MSCI Japan ETF (EWJ) and the WisdomTree Japan Hedged Equity ETF (DXJ) remained flat and rose 2.2%, respectively, in April.

In the next part of this series, we’ll analyze the performance of the UK’s manufacturing PMI in April.


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