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Japan manufacturing grows at modest pace in July

Growth of Japan's manufacturing sector was sustained at a modest rate in July but rates of expansion were lower than in June and export trade rose at its weakest pace in nearly a year, said IHS Markit Aug. 1.

The Nikkei Japan Manufacturing PMI slowed to 52.1 in July from 52.4 in June. Output and new orders increased but at modest levels. Despite the reported firm demand for high-tech products, new export orders rose at their weakest pace in 11 months.

Optimism among Japanese manufacturers, however, remained strong, as the Future Output Index reached a series-record high in July, the report said, citing the 2020 Tokyo Olympics for its potential for new business and new product launches as factors.