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Activity in Japan's manufacturing sector rose at the fastest rate in three months in August as local and export orders recovered, according to a preliminary private survey's results.
The Markit/Nikkei Japan Flash Manufacturing PMI advanced to 52.8 in August from the finalized reading of 52.1 in July. The reading is still above the 50-point mark delineating growth from contraction.
Indications of weakening in July and July has raised concerns that global demand may be becoming soft after a solid start to the year.
Expansion in output, new orders and employment in the manufacturing sector all accelerated during the first three weeks of the month.
A preliminary measure of manufacturing production rose 1.7 points to 53.1, the highest in three months. Meanwhile, the index for new export orders increased to 52.2 from 50.9 in the prior month.
The data comes after a poll by Reuters showed Japanese manufacturers' confidence climbed in August to the highest level in 10 years, giving further evidence of a widening economic recovery.
