Overview
- S&P Global flash PMIs show Japan's manufacturing PMI rose to 55.1 in August with new orders growing at their fastest pace since January 2018, driven by semiconductor and AI-related export demand.
- Japan's composite flash PMI climbed to 53.4, the strongest six-month reading, as services activity also firmed and employment continued to expand.
- The combination of faster output, strong export orders and sustained selling-price increases has strengthened market expectations that the Bank of Japan will lift rates at its September meeting.
- Australia's flash composite PMI eased to 52.5 in August while the manufacturing output index slipped below 50 to 49.7, signaling a contraction in goods production even as new orders and export work rose.
- Input-price inflation in Australia reaccelerated, concentrated in fuel, freight and raw materials, and firms slowed price increases for customers which points to rising margin pressure that could hit corporate earnings before headline inflation moves higher.