Japan PMI up, but economists seek more data before moving

[TOKYO] Japan's manufacturing activity picked up in the third quarter, a survey showed, but economists say that they need more information on wages and consumer spending to determine whether the government should raise the sales tax again next year.

An improving corporate sector is certainly welcome news for Japanese Prime Minister Shinzo Abe after the economy contracted sharply in the second quarter following the first of two increases in the sales tax.

But the government, which is monitoring third quarter economic data to decide whether to raise the sales tax again, is likely to remain cautious for fear that consumer spending may not fully recover.