Japan manufacturing on the rise


Japanese manufacturing activity expanded in July at the fastest pace in five months as supply chains recovered from natural disasters in March this year.

Many companies brought forward production to avoid possible power shortages in the summer, according to the latest industry survey.

The Markit/JMMA Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 52.1 in July from 50.7 in June.

The index remained above the 50 threshold that separates contraction from expansion for a third straight month and rose to its highest since February.

The output component of the PMI index rose to 53.1 in July from 52.7 in June, also the highest since February.

"Japan's manufacturing recovery continued at pace in July, as supply chain pressures eased and new business returned to growth," said Alex Hamilton, an economist at Markit.

"Manufacturers added to their staff numbers for the first time since the earthquake and tsunami, a trend that – if sustained in the coming months – will be seen as a vote of confidence in the economic outlook."

The employment index rose to 50.9 from 49.5 in June, showing the first month of job growth since March.

The index for new export orders, a leading indicator of Japanese exports, fell to 48.8 from 49.0 in June to reach the lowest level since April due to reduced demand from China, the data showed.

Related news & editorials

  1. 18.07.2018
    by      In
    3D printing with metals is affecting the way manufacturing occurs, and Australian distributor Raymax Applications reckons this is amply demonstrated by the application of SLM Solutions machines in metal manufacturing processes.
    SLM Solutions Group recently released its fourth generation 280 system... Read More
  2. 16.03.2018
    by      In
    In the 1960s, as much as a quarter of Australia’s workforce was employed in the manufacturing sector, and the industry fuelled 25% of the nation’s economy, according to the Productivity Commission. Half a century on, the closure of Toyota, Ford and then General Motors in October 2017 seemed to... Read More
  3. 24.01.2018
    by      In
    According to Southern Cross CEO, Mark Ferguson, if Australian industry really wants to get serious about saving energy then it needs to take a close look at ‘two-stage’, air compressor technology. As energy costs continue to outstrip other business input expenses it is critical, more than ever... Read More
  4. Martin Chappell
    by      In
    With Australia’s manufacturing industry strengthening, leaders and heads of IT are weighing up which new technologies they should implement to gain a competitive edge. Martin Chappell from Motorola Solutions explains how a simpler and more focused use of data can be the best approach.
    Australia’s... Read More