According to CoinMeta, Japan's Manufacturing Purchasing Managers Index ( PMI ) rose to 54.9 in August, up from 54.5 in July, marking the eighth consecutive month of improvement and reaching its second-highest level since January 2022, only behind April of this year. The main driver of this improvement was a significant acceleration in new orders, the fastest growth in over eight and a half years. Survey participants attributed this growth to improved demand conditions, an increase in inquiries from new customers, and strong sales of products related to semiconductors and artificial intelligence. New export business grew at the fastest rate since early 2018, with companies reporting increased demand from North America, Southeast Asia, and China. Despite supply chain disruptions in the Middle East and cost pressures due to a weaker yen, Japanese manufacturers' sentiment improved to its highest level in six months, and companies generally expect further increases in customer demand, especially in the areas of semiconductors and artificial intelligence technology.