Industrial Production Japan

In March 2017, the industrial production contracted by 1.9% month on month. According to METI survey, manufacturers plan to boost production by 5.3% in April though.

Published monthly by the Ministry of Economy, Trade and Industry. Updated till the month of March 2017 (published on May 17th, 2017).

Recent data trend:

In March 2017, the industrial production in Japan contracted by 1.9% month on month (MoM), significantly weaker than expected. According to Reuters, economists were on average forecasting 0.8% decline. By industry, capital goods such as general machinery seems to have suffered a large decline in output in March. General machinery output fell by 5.8% MoM, while the electronic parts and devices suffered 4.8% MoM decline.

Manufacturers seem to be thinking of the decline as a blip though. As per the survey by METI, manufacturers are planning to expand production by 5.3% MoM in April 2017. Coupled with the recent positive performance of Japanese exports (rising by 12% year on year (YoY) in March 2017), one could perhaps give a benefit of doubts to the positive production outlook for April.  
 
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.
For more information, visit the official government page

 

Quarterly Industrial Production and GDP



Source: METI, JMA

The Next Release Date:  May 31st, 2017 (Preliminary April Data)

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