Operating conditions across Japan's manufacturing sector improved in August, with the final S&P Global Japan Manufacturing Purchasing Managers' Index (PMI) rising to 54.9, according to data released on Tuesday.

The final reading, which acts as a principal indicator of overall factory conditions, eased from the flash estimate of 55.1 and compared with the 54.5 recorded in the previous month.

A reading above 50 indicates an improvement in sector performance, while a figure below signals a deterioration.

The latest improvement was driven primarily by stronger new orders, with new business increasing at its fastest pace since January 2018.

New export business also rose at an accelerated pace, reaching its strongest rate since the start of 2018, supported by stronger demand from North America, Southeast Asia and China.

Employment also increased, with staffing levels rising at their fastest rate since February 2018.