Industrial Production Japan

In May 2017, industrial production dipped by 3.6% MoM after increasing robustly by 4% in the month of April 2017.

Published monthly by the Ministry of Economy, Trade and Industry. Updated till the month of May 2017 (published on June 30th, 2017).

Recent data trend:

In May 2017, the industrial production tumbled, contracting by 3.6% month on month (MoM). The contraction in the production was broadly in line with the 3% contraction expected by economists, as per a Bloomberg poll of economists. In our view, the cut in May need not be a worrying sign as it comes after a robust 4% expansion in April. In our view, the expansionary trend in the industrial production in the last 12 months remain intact.   

The contraction in the Industrial production was driven by transport equipment, general-purpose business machinery and fabricated metals. They recorded a contraction in production by 11.6%, 2.5% and 6.3% MoM, respectively. The fall in industrial production can be viewed in parallel with the sharp dip of 1.6% MoM in retail sales growth in May. However, industrial production tends to be more correlated with exports and the contraction in production is contrary to the expansion of real exports in May (1.9% MoM). The opposite moves by production and exports may explain manufacturers' expansionary production plan. According to a survey of production forecasts by METI, manufacturers now plan to expand production by 2.8% MoM in June, followed by a marginal fall by 0.1% in July.

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: July 31st,2017 ( Preliminary June Data)



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