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Japan Manufacturing PMI Climbs To 52.8 - Markit

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Japan's manufacturing sector continued to expand at an accelerated pace in October, the latest survey from Markit Economics revealed in Thursday's preliminary reading with a PMI score of 52.8.

That follows the reading of 51.7 in September.

A score above 50 signals expansion in a sector, while a reading below means contraction.

"Latest data indicated robust growth of operating conditions for Japanese manufacturers. New business rose at the highest rate since February and output remained in modest growth territory for the third month in a row. Furthermore, payroll numbers rose fractionally during the month, following a decline in September," said Markit economist Amy Brownbill.

Among the individual components, employment and backlogs of work swung from contraction to expansion.

New orders, new export orders, output prices, input prices, stocks of purchases, stocks of finished goods and quantity or purchases all expanded at a faster rate.

Growth continued to expand, albeit at a slightly slower pace.

The sub-index for supplier delivery times lengthened at a faster rate.

"Given the upcoming decision regarding the second planned increase of sales tax to 10 percent, questions will turn to the sustainability of the upturn in growth over the coming months," Brownbill said.

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