Published monthly by the Ministry of Economy, Trade and Industry. Updated till the month of January 2017 (published on March 15th, 2017).
Recent data trend:
As per the revised IP index, the industrial production fell for the first time in six months. In January 2017,the index fell unexpectedly by 0.4% month on month to 100.2 from a 0.7% rise in the previous month. According to a survey by METI, manufacturers plan for a production expansion of 3.5% MoM in February followed by a cut of 5.0% MoM in March.
The consecutive rise in the industrial production between August and December was adding an optimistic tone of the outlook of manufacturing in Japan. However, the decline in January and the expected sizable cuts in production in March add a dark cloud at the horizon.
By industry, the production cuts in January was led by transport equipment, Chemicals(excl.drugs) and production machinery. In particular, the transport equipment industry registered a sharp 4.7% MoM fall, nearly erasing the accumulated production expansion in the industry in the last 4 months.
Brief overview of “Industrial production”
Industrial production is one of the key indicators to measure the performance of the Japanese economy. It also deserves special attention as it has a high correlation to the Japanese stock market. Its monthly report contains other statistics such as inventory, inventory to shipment ratio as well as a survey result for manufacturers’ production plans for the subsequent 2 months.
Quarterly Industrial Production and GDP
Source: METI, JMA
The Next Release Date: March 31st, 2017 (Preliminary February Data)
April 14th, 2017 (Revised February Data)