Marcel Thieliant, Asia's chief economist at KITU Macro, said that preliminary data from Japan's purchasing managers' index shows that the country's economy continues to escape the impact of energy cost shocks. He added that the report shows that the Japanese economy remains resilient and still indicates a sharp acceleration in inflation. He said that the composite PMI rose slightly from 52.8 to a four-month high of 53.1 in July, which is in line with a GDP growth rate of about 1.5% above the trend level. Thieliant added that this improvement is difficult to explain because both service and manufacturing PMI have weakened. This may be because Japan is finally starting to benefit from stronger demand for artificial intelligence-related products, he said.

Marcel Thieliant, Asia's chief economist at KITU Macro, said that preliminary data from Japan's purchasing managers' index shows that the country's economy continues to escape the impact of energy cost shocks. He added that the report shows that the Japanese economy remains resilient and still indicates a sharp acceleration in inflation. He said that the composite PMI rose slightly from 52.8 to a four-month high of 53.1 in July, which is in line with a GDP growth rate of about 1.5% above the trend level. Thieliant added that this improvement is difficult to explain because both service and manufacturing PMI have weakened. This may be because Japan is finally starting to benefit from stronger demand for artificial intelligence-related products, he said.