Japan April manufacturing PMI falls at slower pace

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TOKYO, April 30 (Reuters) - Japanese manufacturing activity contracted at a slower pace for the third consecutive month in April, a survey showed on Thursday, in a tentative sign the worst of Japan's deepest postwar recession may be behind it.

The Nomura/JMMA Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 41.4 in April from 33.8 in March, the largest gain since data were first compiled in October 2001. However, it remained below the 50 threshold that separates contraction from expansion for the 14th straight month.

"It shows that manufacturing activity has begun its adjustment and is now on the mend rapidly," said Minoru Nogimori, economist at Nomura Securities.

"We think that stabilisation in overseas economies constitutes the main factor behind the abrupt slowdown in the rate of contraction."

The output component of the PMI index also rose for the third straight month to 39.4 from 25.9 in March. In January the index was at 18.5, the lowest on record.

Japan is mired in its worst recession since World War Two and after a 3.2 percent slump in the fourth quarter is expected to contract even more in the first quarter, despite some early tentative signs of recovery in exports. [ID:nLM693390] (Reporting by Stanley White; Editing by Edwina Gibbs)