On 28 April, the Ministry of Economy, Trade and Industry released the long-awaited outturn for March industrial production, which provides a first view of the impact of power shortages and supply chain disruptions on the manufacturing sector. In March, industrial production plummeted a seasonally adjusted 15.3% over the previous month, which represents the largest monthly decline on record. The decline was worse than expected, with market analysts expecting a more moderate 10.6% contraction. Compared to March last year, industrial production dropped 12.9% (market expectations: -8.5% year-on-year). The monthly decline was broad-based as power cuts and the lack of supplies disrupted production well beyond the devastated area. The worst results were registered in transportation equipment (-46.4% month-on-month) and machinery industry (-21.8% mom). The quake hit the Japanese industry at a moment of resilient growth, with annual average growth at 13.1% in February. The disruptions in the second half of March brought down annual average growth to 9.1% in March. According to the Survey of Production Forecast (changes in planned production on a month-on-month basis) from the same Ministry released on 28 April, manufacturers expect industrial output to rise in the coming months, expanding 3.9% over the previous month in April (previously expected -1.0% mom) and 2.7% in May.
Industrial production drops sharply in March
April 28, 2011
Looking for forecasts related to Industry in Japan? Download a sample report now.
Japan Economic News
October 24, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from September’s revised 50.4 (previously reported: 50.3) to 51.7 in October.
October 24, 2016
In September, nominal exports valued in yen declined 6.9% from the same month last year, which followed August’s 9.6% decline.
October 12, 2016
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) declined for the first time in three months in August.
October 4, 2016
Consumer sentiment rose from August’s 42.0 to 43.0 in September.
October 3, 2016
According to the Bank of Japan’s quarterly TANKAN business survey, sentiment among large manufacturers was stable at 6 in Q3.