Japan August manufacturing PMI lowest in 14 months

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TOKYO, Aug 31 (BestGrowthStock) – Japanese manufacturing activity
expanded in August at its slowest pace in 14 months, a survey
showed on Tuesday, as overseas demand ebbed while a strong yen
weighs down the nation’s exports.

The Nomura/JMMA Japan Manufacturing Purchasing Managers Index
(PMI) fell to a seasonally adjusted 50.1 in August from 52.8 in
July, the lowest level since 48.2 in June 2009.

The index remained above the 50 threshold that separates
contraction from expansion, however, for a 14th consecutive
month.

The index for new orders, the largest contributor to the
decline in the overall PMI, fell to 48.0 from 53.6, its lowest
since the May 2009 reading of 47.7, reflecting widespread
uncertainty over the global economy.

“We attribute the deterioration in new orders to weakness in
external demand,” said Minoru Nogimori, economist at Nomura
Securities.

“We see the recent strength of the yen, trending around 85
yen against the dollar, as having a negative impact on exports.”

The output component of the PMI index slipped to 51.3 from
53.8, its slowest pace of expansion since 50.6 in June 2009.

The index for new export orders, a leading indicator of
Japanese exports, fell to 50.9 from 55.4 in the previous month,
its slowest pace of expansion since the May 2009 figure of 49.8.
(Reporting by Kaori Kaneko; Editing by Edmund Klamann)

Japan August manufacturing PMI lowest in 14 months