Nikkei / Markit PMI preliminary reading for the month
We will get the 'final' late next week, but this generally incorporates around 85% of responses
Key points
- three month high
- Input cost inflation accelerates at fastest pace since March 2011
- Geopolitical tensions weigh on sentiment, with Future Output Index dipping further
Joe Hayes, Economist at IHS Markit, which compiles the survey:
- The manufacturing sector business cycle continued along its upward path in September, according to the flash survey, continuing a trend which PMI data indicates first began just over two years ago. Indeed, business conditions remained robust despite a number of natural disasters over the past month.
- Growth in the goods-producing sector continues to be supported by increases in new orders. Although recent demand pressures have been primarily driven by the domestic market, latest flash data pointed to the first rise in export sales since May amid ongoing global trade frictions.
- That said, business sentiment dipped further in September to a 22-month low as firms remain uncertain to how international trade tensions could impact the Japanese economy