Japan September manufacturing PMI demonstrates expansion for the first time in seven months
In September, Japanese manufacturing activity expanded for the first time for seven months, a preliminary polled showed on Friday. That’s a tentative indication that economic growth could gain pace.
In September, the IHS Markit/Nikkei Japan Flash Manufacturing Purchasing Managers Index or PMI headed north to 50.3 from a final 49.5 in August.
That’s the first time for seven months when the index was above the 50 threshold, separating contraction from expansion.
The index for new export orders edged up to a preliminary 50.2 from a final 47.2 last month, demonstrating the first expansion for eight months.
During the April-June quarter, Japan's economic growth slowed because of weakness in consumer spending and exports.
Surging residential investment due to low interest rates could appear to be rather a positive factor for GDP, as some financial analysts state.
Japan's government also boasted a 13.5 trillion yen stimulus package, that should back domestic demand amid concerns over overseas demand.