Japan Dec final manufacturing PMI hit the highest since Feb 2014

Reuters offers more insights on the Japanese final manufacturing PMI report for December released earlier today.

Key Points:

Japanese manufacturing activity expanded at the fastest pace in almost four years in December as new orders accelerated

The Markit/Nikkei Japan Manufacturing Final Purchasing Managers Index (PMI) was a seasonally adjusted 54.0 in December, slightly below the preliminary reading of 54.2 but still above a final reading of 53.6 in November.

Even after the slight downward revision, the index was at the highest since February 2014. The index also remained above the 50 threshold that separates contraction from expansion for the 16th straight month.

Joe Hayes, an economist at IHS Markit, which compiles the survey: “The Japanese manufacturing sector concluded Q4 with the highest PMI reading since February 2014. Output growth accelerated for a fifth month in succession, while new business opportunities, both domestic and foreign, rose sharply.”