- Amy Brownbill, Markit economist
Japan's manufacturing sector continued to improve in November, expanding at the fastest pace in 20 months in November, as output and new export orders rose. The Markit/Nikkei Japan flash manufacturing PMI climbed to a seasonally adjusted 52.8 in November from a final 52.4 in the preceding month. The gauge remained above the 50 –mark threshold that separates growth from contraction for the seventh consecutive month. If the November's preliminary reading is confirmed, it would be the highest since March 2014. The flash reading for output climbed to 53.9 from 52.4 a month earlier, the fast increase since March 2014. At the same time the PMI for new export orders came in at 53.2 in November, compared with the final reading of 52.2 in October.
The high level of activity in the Japanese manufacturing sector so far this quarter suggests economic growth will rebound after the world's third biggest economy slid into recession in the September quarter, with GDP falling 0.2% for the second quarter in a row. Robust export activity in the factory sector in November suggests that solid global growth, which is seen slowly shaking off the effects of China's slowing economy, will boost Japan's economic recovery.
© Dukascopy Bank SA