Japan: Industrial production contracts in March
April 28, 2017
Industrial production in Japan fell 2.1% in March compared to the previous month in seasonally-adjusted terms, contrasting February’s eight-month high of a 3.3% increase. March’s mark undershot analysts’ expectations of a 1.0% drop.
According to the Ministry of Economy, Trade and Industry, March’s decline in industrial production was driven by the general-purpose, production and business-oriented machinery, electronic parts and devices and transport equipment categories, while the production of pulp, paper and paper products, information and communication electronics equipment and non-ferrous metals grew.
On an annual basis, industrial output rose 3.3% in March, coming in below February’s 4.7% increase. Annual average growth in industrial production ticked up from 0.8% in February to 1.1% in March.
The Survey of Production Forecast showed that manufacturers are becoming more pessimistic. They now expect industrial output to have recorded a 8.9% monthly increase in April, below the 9.8% rise forecast in the previous month’s survey. Manufacturers expect a 3.7% decline in March.