Japanese manufacturing activity rebounded modestly in May having contracted fractionally in April.
The Markit-JMMA purchasing managers index rose to 50.9 from 49.9 in April, in line with the “flash” PMI estimate released in late May.
A reading above 50 indicates overall activity within the sector is expanding.
Here’s Markit economist Amy Brownbill on the bounce in manufacturing activity.
“The latest PMI signalled an improvement in operating conditions in the Japanese manufacturing sector. Both growth in production and new orders resumed, having contracted in the previous survey period. According to survey participants a rise in client demand helped by new product launches and enhanced marketing strategies led to the latest increase in new work intakes. Subsequently, employment growth was sustained for the second straight month.
However, despite reports of a falling yen/dollar rate, new exports orders growth was weak and lower than the average for the current 11-month sequence of expansion. Meanwhile, input price inflation eased to the weakest rate in nearly two-and-a-half years, while charges rose for the first time in four months, albeit at a weak rate.”