The Japanese Jibun Bank Flash Manufacturing PMI Index surprised market expectations and landed at 54.3 in December, dipping by 0.2 points when compared to last month's results, IHS Markit's report released on Tuesday showed.
The headline figure landing above the neutral 50 marks an upturn in Japan's manufacturing activity, with manufacturers, however, signaling a softer improvement in the health of the sector compared to the one seen in November.
"Latest PMI data pointed to a sustained expansion in the Japanese manufacturing sector at the end of 2021. Despite easing slightly from November, firms continued to note moderate growth in both production and new orders, with both measures reading above their respective annual averages in December," Economist at IHS Markit Usamah Bhatti said.
