Economic calendar

Forecast53.3Previous53.3

What it is

An index based on surveys of purchasing managers at Japanese factories about orders, output and hiring, compiled by S&P Global. The final reading is a revision of the earlier flash estimate.

Why it matters

A reading above 50 usually signals that manufacturing is expanding, and below 50 that it is shrinking. It is an early signal of economic health, but the final figure often matters less when it is close to the flash estimate.

Usual market reaction

Markets usually compare the actual figure with the forecast, which is often close to the flash number. A higher-than-forecast result tends to give the yen slight support as it points to a stronger economy, while a lower one often weighs on it. The reaction is usually smaller than for Bank of Japan announcements.

Previous51.5

What it is

A survey of purchasing managers at Canadian factories about new orders, output and hiring, published by S&P Global. A reading above 50 means the manufacturing sector is expanding.

Why it matters

It comes out early in the month and gives a quick read on the economy, so traders watch it, though its importance is usually moderate.

Usual market reaction

Prices usually react to the actual figure compared with the forecast. A higher-than-forecast PMI often supports the Canadian dollar (CAD) as it points to a stronger economy, while a lower-than-forecast result tends to weigh on it, especially if the reading falls below 50.