Japan Industry July 2017


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.

FocusEconomics Consensus Forecast panelists see industrial production rising 3.6% in 2017, which is up 0.1 percentage points over the previous month’s projection. For 2018, the panel expects industrial production to expand 1.8%.

Author: Ricard Torné, Lead Economist

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Japan Industry Chart

Japan Industry July 2017 0

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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