TOKYO, Sept 30 (Reuters) - Japanese manufacturing activityexpanded in September at the fastest pace since a recordearthquake and nuclear disaster in early 2011, a survey showedon Monday, suggesting the economy has been able to stage a fullrecovery due to strong domestic demand and recovering exports.
The Markit/JMMA Japan Manufacturing Purchasing ManagersIndex (PMI) rose to a seasonally adjusted 52.5 in September from52.2 in the previous month.
The index remained above the 50 threshold that separatescontraction from expansion for the seventh month and showed thatactivity expanded at the fastest since February 2011, one monthbefore the natural disaster struck the country's northeastcoast.
The output component of the PMI index also gained to 53.8from 53.5 in August, to show the fastest growth since the quake.
The index for new export orders jumped to 53.3 from 49.3 inAugust, marking the fastest growth in orders since March thisyear.
Japan's economy expanded for a third straight quarter inApril-June, outpacing many G7 nations, as Prime Minister ShinzoAbe's pro-growth policies bolstered household spending and drovedown the yen, benefiting exports.
The Bank of Japan also offered an intense burst of stimulusin April, pledging to double the country's base money viaaggressive asset purchases to achieve its 2 percent inflationtarget in two years.
- Budget, Tax & Economy