Thursday, September 30, 2010

Japan Sept manufacturing PMI shrinks, first in 15 months

TOKYO: Japanese manufacturing activity contracted in September for the first time in 15 months, a survey showed on Thursday, Sept 30 as the pace of growth in export orders and output slowed amid the yen's surge versus the dollar.

The Nomura/JMMA Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 49.5 in September from 50.1 in August.

The index fell below the 50 threshold that separates contraction from expansion for the first time since June 2009.

The index for new export orders, a leading indicator of Japanese exports, fell slightly to 50.6 in September from 50.9 in the previous month.

New export orders in September grew at the slowest pace since they began expanding in June 2009, the data showed.

"The risk of further weakening of manufacturing activity remains, but we do not foresee a sharp contraction in activity given firm exports," said Minoru Nogimori, an economist at Nomura Securities.

"We project that Japan's exports will continue to grow in tandem with an improvement in economic conditions in Asia, excluding Japan."

The output component of the PMI index also fell slightly, to 51.1 from 51.3 in August. - Reuters


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