Japan manufacturing PMI rises to 49.8 in August from 49.1 in July, final reading shows

Japan’s manufacturing purchasing managers’ index rose to 49.8 in August from 49.1 in July in the final reading, S&P Global and Jibun Bank said. The result brings the index back into expansion territory and comes in above the 49.5 expected by analysts polled by FactSet.

S&P and Jibun say the weak performance of the new orders component weighed less on the headline index, and the manufacturing component returned to expansionary territory, which contributed to the improvement in the PMI this month, even if it was below the expansionary 50-point mark.

In a statement, the companies said producer price inflation continues to rise in Japan, and has now reached its highest level in the past 16 months, amid a weakened exchange rate and rising raw material prices.