RTTNews - Operating conditions in the Japanese manufacturing sector improved for the first time since February 2008, data released by the Markit Economics showed Friday.
The seasonally adjusted headline Nomura/JMMA Purchasing Managers' Index or PMI rose to 50.4 in July from 48.2 in the previous month, the first improvement for seventeen months. A PMI reading above 50 indicates expansion in the sector.
The manufacturing economy is in a state of recovery, said Minoru Nogimori, economist of Financial & Economic Research
Centre at Nomura.
We think that the Japanese manufacturing sector will continue to recover through autumn, supported by further improvements in export demand, the economist said.
Manufacturing output rose for the second month in July and further increases are expected as new orders rose for the first time in seventeen months.
Downward pressure on manufacturers' cost burdens was maintained in July, the Markit said. Despite a rise in new order levels, Japanese manufacturing employment continued to shrink in July, but the pace was the weakest in nine months.
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