Nikkei / Markit Japan Manufacturing PMI
Here are two competing headlines, take your pick!
- Final Japan Manufacturing PMI shows jump from flash reading
- Japan Manufacturing PMI drops on the month
Yep, something for everyone!
But, I digress …
Key points highlighted by Markit:
- New orders rise to softest extent since October 2016
- Delivery times lengthen at sharpest pace in over seven years
- Both input and output price inflation rates accelerate to multi-year highs
Commenting on the Japanese Manufacturing PMI survey data, Joe Hayes, Economist at IHS Markit, which compiles the survey, said:
- Latest survey data signalled a slowdown to manufacturing sector growth at the beginning of Q3. Output growth eased and there was a noticeable softening of demand, while export sales failed to record any upswing for a second month running.
- There was also evidence that supply-side constraints were beginning to bite harder.
- Employment growth slipped and was weaker than rates seen earlier in the year, meanwhile delivery times for inputs lengthened to the greatest extent in over seven years.
- In turn, input price inflation accelerated to an 88- month high, resulting in the strongest rate of increase in selling charges for almost a decade. Although stronger output price inflationary pressures will be welcomed by policymakers, anecdotal evidence indicates the latest rise was primarily cost-push. Further weakness in total new business growth could skew the inflationary outlook to the downside.
(bolding mine)