Japan - Nikkei / Markit manufacturing PMI for January to 54.8 (prior was 54.0)

Surging manufacturing PMI in Japan

Final comes in at 54.8

• preliminary was 54.4
• prior (December) 54.0

Commenting on the Japanese Manufacturing PMI survey data, Joe Hayes, Economist at IHS Markit, which compiles the survey, said:

• "Headline PMI data for January signalled further positivity for the Japanese manufacturing sector. New business opportunities increased at the sharpest rate in four years, supporting the quickest rise in output since February 2014. "Businesses appeared to derive confidence from the robust economic backdrop that official data has depicted, with optimism strengthening to a fourmonth high. In turn, this supported an accelerated rate of job creation. "Amid rising global commodity prices, input costs increased sharply. In response, manufacturers raised selling prices to the greatest extent since October 2008. Sustained output price inflation observed recently in the PMI suggests firms are becoming more confident in the purchasing power of their customers. With a tightening labour market, firms should raise wages to support consumption and in turn, generate domestic inflationary pressures. That said, rising raw material prices could risk the extent to which labour costs can be increased without harming profit margins."

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