Japan: Industrial production declines in July
August 31, 2017
Industrial production fell 0.8% in July compared to the previous month in seasonally-adjusted terms, contrasting June’s 2.2% increase. July’s print undershot the 0.3% decline that market analysts had expected.
According to the Ministry of Economy, Trade and Industry, July’s decline in industrial production was driven by general-purpose, production and business oriented machinery, electrical machinery, chemicals (excluding drugs), in that order.
On an annual basis, industrial output rose 4.7% in July, coming in below June’s 5.5% increase. Annual average growth in industrial production ticked up from 3.0% in June to 3.8% in July, which represented the highest reading since Septembe 2014.
The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a 6.0% monthly increase in August, above the 3.6% rise forecast in the previous month’s survey. Manufacturers, expect a 3.1% contraction in September.