Japan’s manufacturing sector grew at a steady pace in November, as exports and new orders contributed positively despite weakness in the global economy.
The final manufacturing purchasing managers’ index (PMI) came in at 51.3 in November, down slightly from 51.4 the previous month. The reading was slightly higher than last week’s flash estimate of 51.1, which represents responses from 90% of survey participants.
A PMI reading above 50 points to expansion in economic activity. November marked the third consecutive month manufacturing conditions were on the right side of growth.
“The latest PMI data showed signs that conditions in the Japanese manufacturing sector continue to improve during the final quarter of 2016. Production rose for the fourth month running, helped by a boost in total new orders. Amy Brownbill, economist at IHS Markit, said in a statement.
Markit added that the Japanese economy was on pace to expand 2.1% year-over-year November, the highest in three months.
Japan’s economy is giving off mixed signals in the second half of the year. While the economy expanded much faster than expected in the third quarter, household spending continues to decline and inflation remains virtually non-existent. Experts warn that the economy will likely experience lower growth for longer, as the Bank of Japan (BOJ) transitions from a quantitative easing stimulus to a policy program that targets interest rates.