Japan’s manufacturing PMI rises in December as new orders jump at sharpest pace since January

Manufacturing activity in Japan rose during the month of December, following a sharp jump in new orders, which reached the highest levels since January this year.

Flash Japan Manufacturing PMI rose to 51.9 in December, from 51.3 in November, signalling the greatest improvement in manufacturing conditions since January. Also, flash Japan manufacturing output index fell to 53.1, from 52.4 in November, following solid growth in production.

Published on a monthly basis approximately one week before final PMI data are released, this makes the PMI the earliest available indicator of manufacturing sector operating conditions in Japan. The estimate is typically based on approximately 85–90 percent of total PMI survey responses each month and is designed to provide an accurate indication of final PMI data.

"Latest survey data pointed to a further improvement in the Japanese manufacturing sector. Output and new orders both increased at sharper rates, with new work inflows rising at the quickest pace since January," said Amy Brownbill, Economist, IHS Markit.

Meanwhile, the USD/JPY traded at 117.57, up 0.46 percent, while at 5:00GMT, the FxWirePro's Hourly Yen Strength Index remained highly bearish at -127.46 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex