Japan manufacturing output rises for first time in six months

Japanese manufacturing activity showed signs of steadying in August as output rose for the first time in six months, in a tentative sign that the economy may be recovering from a slump earlier this year, a private survey showed on Tuesday.

The IHS Markit/Nikkei Japan Flash Manufacturing Purchasing Managers Index (PMI) edged up to 49.6 in August from a final 49.3 in July on a seasonally adjusted basis. The headline index remained below the 50 threshold that separates contraction from expansion for the sixth month, but the rate of decline was slight.

The index for output rose to a preliminary 50.6 from 49.4 in the previous month. While marginal, that would indicate the first increase since February if confirmed in revised data.