Japan Manufacturing activity rebounds slightly in October

Japan-s manufacturing activity rebounded slightly in October because of recovery in the manufacturing sector after the deadly earthquake and Tsunami in last March. Its PMI (Purchasing Managers Index) rose slightly to 50.6 in October compared to 49.3 in September. Any reading more than 50 indicates growth.

The improvement in the Japanese Manufacturing activity was mainly because of marginal improvement in the manufacturing sector operating condition which was heavily affected in the earthquake and Tsunami last March. The sector is improving slowly with revival of supply chain network.

Japanese export companies are now struggling with higher Yen which is affecting the profitability of export companies. Major Car exporterToyotaand Honda have signaled for lower profitability in the coming months because of the same. Recently Bank of Japan has increased stimulus to boost industrial and economic growth which should have some positive impact to the struggling world-s third largest economy.

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