Japan Flash PMI Readings for August Out: Economy Appears to be Growing

The Jibun Bank Flash Japan Manufacturing PMI has come in slightly higher at 49.5 in August when compared with 49.4 in July, but continues to

USD/JPY

Manufacturing activity continued to decline in Japan for the fourth consecutive month in August. The Jibun Bank Flash Japan Manufacturing PMI has come in slightly higher at 49.5 in August when compared with 49.4 in July, but continues to remain below the 50 threshold indicating contraction.

The manufacturing sector was affected by a steep decline in new export orders, while factory output and new orders also contracted in August. Employment in the manufacturing sector also grew at a slower pace than previously.

On the positive side, the services sector appears to be going strong and expanding with the Flash Services PMI reading rising to 53.4 in August from 51.8 in July. This is the highest reading since October 2017.

The Flash Composite PMI for August has come in at 51.7, rising higher than the final reading for July which stood at 50.6. The figure indicates that the Japanese economy has grown at a faster pace than in July, despite the weak performance of the manufacturing sector.

After turning slightly bearish, USD/JPY appears be trading mostly unaffected by this news release for now. At the time of writing, this forex pair is trading at around 106.46.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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