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Japan Nov flash manufacturing PMI eases slightly, output up

Thursday, November 20, 2014 - 09:52
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Growth in Japanese manufacturing activity slowed slightly in November but output grew at the fastest pace since March, a survey showed on Thursday, suggesting the economy is recovering from a surprise recession.

[TOKYO] Growth in Japanese manufacturing activity slowed slightly in November but output grew at the fastest pace since March, a survey showed on Thursday, suggesting the economy is recovering from a surprise recession.

The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 52.1 in November from a final 52.4 in October.

The index remained above the 50 threshold that separates contraction from expansion for the sixth consecutive month.

The output component of the PMI index rose to a preliminary 53.5 from 51.3 in October to reach an eight-month high.

New orders and new export orders both rose but at a slower rate. The index for new export orders fell to a preliminary 51.8 from 53.3 in the previous month.

Data on Monday showed the economy slipped into an unexpected recession in the third quarter as a sales tax increase in April weighed on consumer spending and business investment.

The recession shocked policymakers, setting the stage for Prime Minister Shinzo Abe on Tuesday to postpone a second sales tax hike and call a snap election.

The final Markit/JMMA PMI for November will be released on Dec 1.

REUTERS