The preliminary reading for the Nikkei January Manufacturing PMI from Japan
- expected is 52.8
- prior was 52.6 in December
The 'key points' from Markit:
- Little-changed from December's joint 21-month high
- Flash Japan Manufacturing Output Index at 53.2 (53.9 in December). Robust growth in output at Japanese manufacturers
Comment from Amy Brownbill, economist at Markit:
"The start of 2016 was largely positive for the Japanese manufacturing sector, with latest data pointing to a solid improvement in operating conditions. Production rose at a rate little-changed from December's joint 21-month record.
In contrast, new order growth eased to a six-month low. Data suggested that the slowdown in total new order growth was mainly attributed to the domestic market, as international demand rose at a faster rate.
Meanwhile, input prices fell for the first time in over three years linked to the declines in raw material costs, particularly oil- and metal-related items."
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That point on "the slowdown in total new order growth was mainly attributed to the domestic market" could be instructive for the Bank of Japan. The BOJ have said in the past (logically) that further easing from them cannot influence offshore conditions ... but if Markit are right on a domestic slowdown then the BOJ may well see there is scope for further easing to have an impact.
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This is not often much of a market-mover for the yen.
