Japan’s January manufacturing activity expands at sharpest pace in almost three years

Japan’s manufacturing conditions have rebounded at the sharpest pace seen in almost three years. The Flash Japan Manufacturing PMI rose to 52.8 in January from 52.4 in December. This was the highest since March 2014. The manufacturing output index dropped to 53.3 in January from 53.8 in December.

Production in Japan is increasing at a stronger rate. The newly-launched business expectations index was at a 44-month high. New orders rose at a faster rate in January, along with new export orders and employment.

The latest PMI survey data showed that Japan’s manufacturing sector began 2017 on a strong footing, noted IHS Markit economist Amy Brownbill.

“The rise in total incoming new orders was driven in part by a sharp increase in international demand, as new export orders rose at the quickest rate in over a year. Meanwhile, inflationary pressures picked up to the greatest since March 2015”, stated Amy Brownbill.

At 04:00 GMT the FxWirePro's Hourly Strength Index of Japanese Yen was highly bullish at 111.853, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -78.9802. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex