Japanese manufacturing sector expands at slower rate as growth in exports falters

The headline Japan Manufacturing Purchasing Managers’ Index came-in at 52.1 in July vs. 52.4 in June. This was the eleventh straight month of improvement in operating conditions.

Key points

Export trade rose at the weakest pace in nearly a year

Operating costs increased for a ninth successive month. Inflation was slightly lower

In July, the Future Output Index reached a series-record high. Respondents highlighted the potential for new business related to the 2020 Tokyo Olympics, new product launches and expected general firmer demand as the main factors behind their optimism.