Japan: Industrial production declines for third consecutive month in July
August 31, 2018
Industrial production contracted 0.1% on a month-on-month and seasonally-adjusted basis in July, following June’s 1.8% decrease. The print represented the third consecutive drop in industrial output and contrasted market expectations of a 0.3% gain.
The categories that drove the month-on-month contraction were transport equipment, general-purpose, production and business oriented machinery and iron and steel. Weaker output for these categories was partially offset by gains in chemicals (excluding drugs), electronic parts and devices, and information and communication electronics equipment.
On an annual basis, industrial output rose 2.3% in July, contrasting the 0.9% decrease registered in June. Annual average growth in industrial production ticked down from 3.2% in June to an over one-year low of 3.0% in July.
Japan Industrial Production Forecast
FocusEconomics Consensus Forecast panelists see industrial production rising 1.8% in 2018, which is down 0.2 percentage points last month’s projection. For 2019 the panel expects industrial production to expand 2.4%.