The Markit/Nikkei flash manufacturing purchasing managers' index for Japan rose to a four-month high of 52.6 in September from 52.2 in August.
The country’s manufacturing output index came in at 53.5 in September from 52.6 in the previous month, marking the fastest pace of growth since May.
Export orders picked up, while the pace of job creation declined to a 10-month low.
Positive data at the end of the third quarter indicate good prospects for production in the coming months. Business sentiment has also slightly improved since August.
Japan’s economic growth in the second quarter was revised down to 2.5% from 4% on a yearly basis. The GDP has been expanding for the sixth consecutive quarter, which is the longest winning streak for the world’s third largest economy.