August manufacturing PMI edges up to 55.1, led by output and new orders
Macro
The August manufacturing Purchasing Managers' Index released by S&P Global on the 21st came in at 55.1, up slightly from 54.5 in the previous month. Output and new orders remained at high levels and drove growth, with some respondents noting that new business from semiconductor and artificial intelligence related industries has been building steadily. Among the main components, the output index was 56.1, the new orders index was 56.0, the employment index was 54.2, the suppliers' delivery times index was 44.3, and the stocks of purchases index was 50.4. The services PMI rose to 52.3 from 51.2 in the previous month. Many surveyed companies pointed to a high-inflation environment caused by rising raw material, fuel, and energy prices amid the situation in the Middle East, and cited higher labour costs and the weak yen as factors pushing up costs. An S&P Global representative commented that overall business sentiment has improved from the previous month, sales are growing strongly, and employment is expanding further, adding that expectations are rising further that Japanese companies can continue to deliver solid results as long as there are no additional shocks to prices or demand.
