Nikkei flash manufacturing PMI index released today showed the activity in Japan expanded at a fastest rate in 2 months largely due to a jump in the new export orders.
The flash PMI rose to 52.8 in April from 52.4 in March. New export orders rose at a faster rate, details of the report revealed. This should not come as a surprise, given the sequential rise in the Japanese exports seen over the last four months.
The good news is the output prices and input prices rose at a faster rate in April. Paul Smith, Senior Economist at HIS Markit, which compiles the survey, said, “Companies are adding to their workforces at a rate that matched January’s 34-month peak, but price pressures continue to mount with input costs and output charges rising at stronger rates.”