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Japan december factory activity grows at fastest pace in nearly 4 years - flash PMI

Published 12/13/2017, 07:34 PM
Updated 12/13/2017, 07:40 PM
Japan december factory activity grows at fastest pace in nearly 4 years - flash PMI

TOKYO, Dec 14 (Reuters) - Japanese manufacturing activity expanded at the fastest pace in almost four years in December as new orders accelerated, a preliminary survey showed on Thursday, suggesting the economy was poised to extend its near two-year run of growth.

The Markit/Nikkei Japan Manufacturing Flash Purchasing Managers Index (PMI) rose to a seasonally adjusted 54.2 in December from a final reading of 53.6 in November. It was the highest reading since February 2014.

The index remained above the 50 threshold that separates contraction from expansion for the 16th straight month.

"With Q3 GDP growth recently revised higher, latest flash PMI data signalled further positivity for the Japanese economy in the final month of 2017," said Joe Hayes, economist at IHS Markit, which compiles the survey.

Hayes noted that the PMI was supported by the sharpest boost in order book volumes since January 2014.

"Recent yen weakness appeared to benefit exporters, with new orders from abroad rising strongly," he said.

The flash index for new orders rose to 56.6 in December, from a final 54.7 in the previous month.

The output price index increased to 51.4, the highest since July 2014, from a final 51.3 in November.

The final December reading is due on Jan. 4.

Japan's economy grew twice as fast as originally estimated in the third quarter, thanks to a business spending splurge and buoyant exports that compensated for a decline in consumer spending, the government said last week.

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