Japan Industry March 2017


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.

FocusEconomics Consensus Forecast panelists see industrial production rising 1.8% in 2017, which is up 0.2 percentage points from the previous month’s forecast. For 2018, the panel expects industrial production to expand 1.5%.

Author: Ricard Torné, Lead Economist

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Japan Industry Chart

Japan Industry March 2017

Note: Month-on-month changes of seasonally-adjusted industrial production and year-on-year growth rate in %.
Source: Ministry of Economy, Trade and Industry (METI) and FocusEconomics calculations.

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