24.11.201702:36:00UTC+00Japan Manufacturing Growth Accelerates in November

Japanese manufacturing activity grew at its quickest pace in over three years in November, with output, new orders and new export orders all picking-up, according to a preliminary survey. This indicates that the economy will sustain its expansion.

The Markit/Nikkei Japan Manufacturing flash Purchasing Managers Index increased to 53.8 in November on a seasonally adjusted basis from a final reading of 52.8 in October.

The “flash” manufacturing output index advanced to 54.2, the strongest rate of expansion for since March 2014.

The flash index for new export orders increased to 54.5 from a final 52.3 in the previous month to reach its strongest since December 2013, supported by recent weakness in the yen. The index for overall new domestic and export orders advanced to its highest since March 2014.

Input prices increased at a much quicker pace than October, spurred by higher material prices and the cheaper yen. However, the survey implies that manufacturers had only passed on a smaller portion of the big cost rises to their customers.

The economy of Japan expanded in the third quarter to mark the longest streak of sustained growth in over a decade. Most of the growth in the third quarter came from exports as household spending dropped while capital expenditure slowed.