Nikkei / Markit preliminary PMI
52.4
- prior 52.2
- New order growth accelerates
- exports declining to sharpest extent in over two years
- Business confidence drops for seventh straight month (to lowest since October 2016 )
Comment - Joe Hayes, Economist at IHS Markit
- "Preliminary PMI data shows that Japan's manufacturing sector closed 2018 with a strong finish. Production expanded solidly in December and at the fastest rate since April. There appears to be no lagged impact on output from the strong contraction in capex spending during Q3. The case for a year-end rebound in GDP looks strong based on PMI data thus far in Q4.
- Survey data does bring some cautious undertones to the fore, however. Export orders declined at the fastest pace in over two years, while total demand picked up only modestly. Confidence also continued to fall, a seventh straight month in which this has now occurred. The prospects heading into 2019 ahead of the sales tax hike still appear skewed to the downside."
(bolding mine and something in particular to watch in 2019)
