Japanese manufacturing activity shrank less than expected in August and was close to breaking back into expansion territory, purchasing managers index data showed on Thursday.
The S&P Global flash manufacturing PMI rose to 49.9 points in August from 48.9 in July, preliminary data for the month showed. The print was higher than estimates of 49.2, but just remained in contraction territory below 50.
Still, the higher PMI reflected some improvement in Japanese manufacturing activity amid some clarity for the sector after the U.S. agreed to impose relatively lower export tariffs on Japanese goods.
S&P analysts said the stronger PMI was driven chiefly by increased output, and that manufacturing sales still remained under pressure.
“The recovery in manufacturing output may be hard to sustain unless we see an improvement in sales in the near-term,” Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence wrote in a note.
Japan’s non-manufacturing sector grew at a slower pace in August, but still remained relatively strong amid robust local demand. The S&P Global flash services PMI fell to 52.7 points in August from 53.6 points in July.
This saw Japan’s flash composite PMI improve to 51.9 in August from 51.6 in July.
The positive PMIs come after the U.S. and Japan signed a trade deal in late-July, which saw Japan subject to 15% tariffs on exports to the United States. The levy offered some relief to Japanese businesses, given that it was lower than the 25% duty initially outlined by Washington.
Source :
https://www.investing.com/news/economic-indicators/japan-manufacturing-activity-comes-close-to-expansion-in-august-pmi-4203361
