13:36, 21-Feb-2018
Japan Feb. PMI: Factory expansion slows on reduced export orders
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To the Japanese manufacturing sector. Factory activity expanded at a slower pace in February as growth of new export orders slowed due to the yen's appreciation. That means Japan's corporate sector remains highly sensitive to the currency market.
The Flash MarkitNikkei Manufacturing Purchasing Managers Index fell to 54.0 in February from 54.8 in January. That's still above the 50 threshold that separates expansion from contraction, but is a decline for the first time in four months.
The index for new export orders fell on the Yen's strengthening to a 3-month-low of 54.0, that has in turn curbed manufacturing growth. Japanese policymakers and companies are not fans of a strong yen, because it can lower exporters' earnings and increase deflationary pressure by reducing import prices.