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Financial News: Japan's Factory Activity Growth Improves In April

Japan's Factory Activity Growth Improves In April

05/01/2018 - 01:13:00 (RTTNews)

(RTTNews) - Japan's manufacturing sector expanded at a faster pace in April amid improved output and new orders growth, survey results from IHS Markit showed Tuesday.

The Nikkei Purchasing Managers' Index rose to 53.8 in April from 53.1 in March. A score above 50 indicates expansion in the sector.

For the first time since January, the headline PMI figure increased and thereby signaled a stronger rate of growth in the sector.

Output increased at the fastest pace since January. The gain in new business was equally solid and faster than the previous survey period.

Driven by favorable demand environment, manufacturers raised their staffing in April.

Input prices continued to inflate sharply, with panelists reporting higher food, fuel and metal costs. To counteract this, output prices were increased, albeit to the softest extent in three months.

Further, the survey showed that businesses remained strongly positive towards output prospects in April.

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