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02.07.2018 05:52

Japan manufacturing PMI in line with expectations in June

The headline Nikkei Japan Manufacturing Purchasing Managers' Index - a composite single-figure indicator of manufacturing performance - posted 53.0 in June, up from 52.8 in May, to indicate a stronger improvement in the manufacturing sector.

Commenting on the Japanese Manufacturing PMI survey data, Joe Hayes, Economist at IHS Markit, which compiles the survey, said: "Japan manufacturing PMI data continue to signal that the sector's current expansion phase still has legs. Output growth edged up in June, supported by further inflows of new work and an accelerated rate of employment growth. "Concerns do remain however, as new order growth eased to a ten-month low and export sales decreased for the first time since August 2016. Moreover, with input price inflation jumping to a three-and-a-half year high, manufacturers may be forced to absorb higher cost burdens in order to remain competitive, particularly if the yen faces further safe haven demand."

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