Japanese manufacturers are reaping the benefits of stronger global demand, but strong currencies in Britain and the euro zone have capped the pace of expansion there, surveys of purchasing executives show.

The NTC Research Eurozone Purchasing Managers’ Index was flat at 51.9 in February, according to recent data, whilst the British gauge was also unchanged from January at 51.8.
By contrast the Japanese PMI rose to a four-month high of 51.7, boosted by buoyant overseas demand.
“There is some evidence that companies in China and the US are beginning to restock and increase capital expenditure,” said Chris Williamson, chief economist at NTC Research, which compiles the European and Japanese surveys.
Manufacturers in Russia, the Czech Republic and Hong Kong also profited from a brighter world outlook, according to their national PMIs.
Growth in the US manufacturing sector is also expected to have picked up in February. The Institute for Supply Management’s manufacturing index, is estimated to have edged up to 57.0 from January’s 56.4.
But euro zone manufacturers have felt only limited benefits from better global demand as the strength of the euro makes their goods less appealing to foreign buyers.
“The market is focusing on the ... comparison between euro land and the US,” said Ian Stannard BNP Paribas in London. “We could get quite a good (ISM) number, which would see the dollar gaining some further near-term support against the euro.”
British manufacturers reported a fall in new export orders for the second month running. “The (British) PMI survey was disappointing, showing no rebound from weak January numbers with exports remaining under the 50 level,” said Philip Shaw at Investec in London.