Japan Feb manufacturing PMI unchanged at 52.5

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TOKYO, Feb 26 (BestGrowthStock) – Japanese manufacturing activity was
unchanged in February from the previous month in a sign that a
rapid recovery in the sector is levelling off, a survey showed on
Friday.

The Nomura/JMMA Japan Manufacturing Purchasing Managers Index
(PMI) was 52.5 in February on a seasonally adjusted basis,
unchanged from January.

The index remained above the 50 threshold that separates
contraction from expansion for the eighth consecutive month.

“Although the rapid rise of the index from February through
to September in 2009 has abated, it still indicates strong
production activity in Japan,” said Minoru Nogimori, an economist
at Nomura Securities.

“But we expect the strength of the yen … gradually to have
a negative impact on exports and that growth of exports will slow
in the near future.”

The yen (JPY=: ) is trading around 90 to the dollar, which is
stronger than the break-even rate of 92.90 for Japanese
exporters, Nogimori added.

The new export orders index, a leading indicator of Japanese
exports, rose to 55.2 in February, its highest since May 2004.

The output component of the PMI index declined for the second
consecutive month to 55.6 from 56.7 in January.

Stock Research

(Reporting by Stanley White; Editing by Joseph Radford)

Japan Feb manufacturing PMI unchanged at 52.5