Industrial Production Japan

As per the revised IP data for December 2016, the industrial production index rose by 0.7% month on month to 100.6. METI, the agency responsible for publishing the statistics, forecast the production to rise further in January by 0.3% month on month.

Published monthly by the Ministry of Economy, Trade and Industry. Updated till the month of December 2016 (published on February 14th, 2017).

Recent data trend:

Manufacturers in Japan seem to be in an expansive mood. Industrial production expanded by 0.7% in December, building on the gain since August last year. In the 5 months between August to December 2016, the production rose by 4%. 
 
By industry, the expansion is particularly robust among general machinery, electronic parts and devices. The output of car manufacturers, the industry which is currently being subjected to the ire of the Trump administration, expanded by 5.8% in the last 5 months, in line with the overall output gains.   
 
METI, the government agency responsible to compiling the industrial production statistics, forecast the production to continue to grow in January, by 0.3% month on month. Their forecast is based on the survey answers of manufacturers. 
 
The expanding production in Japan is definitely a good news for the Japanese economy. However, it may also give an ammunition to the Trump administration who may be looking for materials to accuse Japan of trying to boost exports to US through exchange manipulation. 
 
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

For more information, visit the official government page

Source: METI, JMA

The Next Release Date: February 28th, 2017 (Preliminary January Data)

                                             March 15th, 2017 (Revised January Data)