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Japan October factory activity expands at fastest pace in nine months - final PMI

Published 01/11/2016, 00:39
Updated 01/11/2016, 00:50
© Reuters. An assembly line to produce hybrid engine's motor is pictured at Honda's transmission factory in Hamamatsu

TOKYO (Reuters) - Japanese manufacturing activity expanded at the fastest pace in nine months in October as output and new export orders picked up, a private business survey showed on Tuesday, offering some hope for the struggling economy.

The final Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) was 51.4 on a seasonally adjusted basis. That compares with a preliminary reading of 51.7 and a final 50.4 in the previous month.

The index remained above the 50 threshold that separates expansion from contraction for the second month and showed that activity expanded at the fastest since January.

The output index was 53.3 in October, less than a preliminary reading of 53.7 but still above 50.8 in the previous month, showing output grew at the fastest pace since December.

The final index for new orders was 50.8, versus a preliminary 51.3 and 49.6 in the previous month, marking the first expansion in nine months. New export orders showed a solid pick up.

Government data on exports and household spending suggest Japan's economic growth was subdued in July-September, so the PMI survey could point to an acceleration in growth in October-December.

Manufacturers also added new jobs at the strongest pace since April 2014, after marginal job creation over the summer, the survey showed.

© Reuters. An assembly line to produce hybrid engine's motor is pictured at Honda's transmission factory in Hamamatsu

Japan's economic growth has been lacklustre for much of this year as consumer spending and exports largely undershot expectations.

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