Updated: 06 January 2015 3:16 am est (New York time)
Econintersect: The Markit/JMMA Japan Manufacturing Purchasing Managers' Index recorded its seventh consecutive month of expansion with a reading of 52.0 in December 2014, identical to the November result. Numbers above 50.0 indicate expansion. Manufacturing production increased for the fifth consecutive month. New orders also increased, both for domestics customers and for export.
Other specifics from the report include (1) the highest input inflation rate in 11 months, attributed to the depreciation of the yen and (2) an increase in goods producers'employment for the third month in a row.
Japans's manufacturing sector seems to be bouncing back well from the sharp hit it took earlier in the year, attributed to response to the big increase in the nation's consumption tax on 01 April from 5% to 8%.
According to Reuters, it is widely believed that Japan will exit from its recession (2Q-3Q 2014) when fourth quarter data is complete. The December manufacturing data supports that eventuality. The December Service Sector PMI also supports a growth scenario for 4Q/2014. Service activity growth accelerated, although employment level remained fla tand new orders fell slightly. Business sentiment improved.
Update: The following summary was supplied by Constatntin Gurdgiev via Twitter:
- Solid activity growth registered at Japanese manufacturers in December (Markit/JMMA Japan Manufacturing PMI, Press Release, 05 January 2015)
- Japan Dec final manufacturing PMI shows sustained growth, good news for PM Abe, BOJ (Stanley White Reuters, 05 January 2015)
- Growth of service sector activity maintained at moderate pace (Markit Japan Services Sector PMI, Press Release, 06 January 2015)