Japan's flash PMI hits 54.4 amidst stronger operating conditions in January

Output volume has expanded at the quickest rate in almost four years.

Japan’s flash PMI rose to 54.4 in January to post accelerated rates of improvement for three consecutive months thanks to stronger operating conditions in the manufacturing sector, according to Nikkei Flash Japan Manufacturing Purchasing Managers' Index published by IHS Markit.

The flash PMI is designed to provide an accurate advance indication of the final PMI data which is a leading indicator of the manufacturing sector’s economic health as it gauges business conditions based on survey responses from indication of performance from the private sector. 

Output volume rose at the quickest rate in almost four years 

The sector similarly displayed positive growth rates across each sector including new orders, employment, work backlog, output and input prices, stocks of purchases and quantity of purchases. 

“The strongest reading in the PMI since February 2014 was supported by quickened rates of output and employment growth, in addition to a relatively sharp expansion in new orders,” said IHS Markit economist Joe Hayes.