Japan’s manufacturing activity remained broadly firm in July, with output rising at its fastest rate since February 2014. The S&P Global flash Japan Manufacturing Purchasing Managers’ Index (PMI) came in at 54.7 in July, slightly softer than 54.8 in June.
Key Findings
A key sub-index for factory output accelerated further, with the index climbing to its highest level since February 2014. Manufacturers also recorded the sharpest increase in new orders in just over five years, helping drive a moderate expansion in overall new business.
Service sector growth softened, with the flash services PMI easing to 51.9 from 52.2. Total new export business expanded at the fastest pace in four months as overseas demand for goods improved, while foreign demand for services slipped again.
Employment across Japan’s private sector rose for a 34th straight month, while backlogs of work accumulated at the strongest pace since February’s series record. Input cost inflation slowed to a three-month low, but output charges rose faster as services firms raised prices at the quickest pace in more than 12 years.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
