Financial News: Japan Manufacturing Sector Accelerates In August - S&P

Japan Manufacturing Sector Accelerates In August - S&P Global

(RTTNews) - The manufacturing sector in Japan continued to expand in August, and at a faster rate, the latest survey from S&P Global revealed on Tuesday with a manufacturing PMI score of 54.9.

That's up from 4158 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Stronger growth in new orders was the principal driver of the improvement in the headline reading. Notably, the amount of new business received by Japanese manufacturing firms increased at the sharpest rate in over eight-and-a-half years.

Panelists reported that sales had been supported by firmer demand conditions, new client enquiries and robust sales for products such as semiconductors and AI-related products. New export business likewise rose at an accelerated pace that was the quickest since the start of 2018, with firms noting greater demand across North America, Southeast Asia and China in particular. Goods producers in Japan responded to higher intakes of new work by raising their production levels again in August.

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