TOKYO, June 23 Japanese manufacturing activity expanded in June for the first time in three months, a preliminary survey showed on Monday, in a sign that domestic demand has quickly recovered from a sales tax increase at the start of April.
The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 51.1 in June from a final reading of 49.9 in May.
The index rose above the 50 threshold that separates expansion from contraction for the first time in three months.
The output component of the flash PMI index rose to 51.8 from a final 48.9 in April.
The new orders index jumped to 52.0 from 49.6, indicating a rebound in domestic demand even as export orders continued to mildly contract. Policymakers have been counting on an export rebound to help ease the economic pain from the sales tax hike, but overseas shipments have been stubbornly weak.
The flash PMI index is based on approximately 85 to 90 percent of total survey responses each month. The final Markit/JMMA PMI for June will be released on July 1. (Reporting by Stanley White; Editing by Kim Coghill)