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Japanese manufacturing activity grew in September at its quickest pace in four months as domestic and export orders increased, a preliminary private survey revealed.
The Nikkei-Markit “flash” Japan manufacturing purchasing managers' index increased to a four-month peak of 52.6 in September, higher from 52.2 in August.
The index continues to be above the 50 threshold which separates expansion from contraction from the 13th straight month and hit its highest level since May.
The flash manufacturing output index also hit its strongest growth in four months increasing to 53.5 from 52.2 in August.
The index for new export orders increased to a preliminary 53.1 from 51.3 in the month earlier. The flash index for new orders climbed to 52.5 from 51.9 in August.
New orders and new export orders both increased at a quicker pace than the month earlier as employment continues to grow, but at a moderate speed.
The PMI surveys comes after recent government data which showed that Japan's exports in August increased at its quickest in almost four years as a result of strengthening demand from overseas. It provides more evidence that the Japanese economy will continue to expand.
