Japan Jan manufacturing PMI shows solid growth at start of year

TOKYO, Feb 2:� Japanese manufacturing activity showed sustained growth in January, a survey showed on Monday, suggesting domestic demand continues to recover after the economy fell into a surprise recession last year.��� The final Markit/JMMA Japan Manufacturing Purchasing Managers Index (PMI) was 52.2 in January, slightly above a preliminary reading of 52.1 and higher than 52.0 in December.��� It remained above the 50 threshold that separates contraction from expansion for the eighth consecutive month.��� The output component of the PMI index was 52.7, more than a preliminary reading of 52.3 and 52.5 in December.��� New export orders rose for a seventh straight month and at a faster pace compared to December.��� Japan's economy is expected to grow an annualised 3.2 percent in the fourth quarter of last year and an annualised 2.1 percent this quarter, rebounding from a mild recession after a sales tax increase last April, according to a Reuters poll.Economists expect growth in consumer spending, exports and capital expenditure to drive growth this year.��� Data last week showing a tightening labour market and gains in industrial output also suggest the economy will continue to expand this year.(AGENCIES)&&&&