Japan Industry

Japan

Japan: Industrial production drops in May

June 29, 2015

In May, industrial production declined 2.2% over the previous month in seasonally-adjusted terms, which contrasted the revised 1.2% increase recorded in April (previously reported: +1.0% month-on-month). May’s print exceeded the 0.8% drop that market analysts had expected.

According to the Ministry of Economy, Trade and Industry, the categories that made the greatest contributions to the monthly expansion were transport equipment, chemicals (excluding drugs) and electronic parts and devices. Meanwhile, the government downgraded its basic assessment of industrial production, stating that output is “see-sawing.”

On an annual basis, industrial output fell 4.0% in May, which contrasted the 0.1% increase tallied in the previous month and marked the largest contraction in nearly two years. Annual average growth in industrial production fell from minus 0.7% in April to minus 1.1% in May, thereby reaching an 18-month low.

The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a month-on-month 1.5% expansion in June, which contrasted the 0.5% drop that was forecast in the previous month’s survey. Manufacturers expect a 0.6% expansion in July.

FocusEconomics Consensus Forecast panelists see industrial production expanding 1.1% in 2015, which is down 0.5 percentage points over the previous month’s projection. In 2016, the panel expects industrial production to rise 2.4%.


Author: Ricard Torné, Lead Economist

Sample Report

Looking for forecasts related to Industry in Japan? Download a sample report now.

Download

Japan Industry Chart


Japan Industry May 2015 1

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.


Japan Economic News

  • Japan: Machinery orders decline in May

    July 11, 2018

    Although core machinery orders—a leading indicator of capital spending over a three- to six-month period—contracted in May, the fall was weaker-than-expected, suggesting that capital expenditure will gain steam further down the road.

    Read more

  • Japan: Business confidence weakens in Q2

    July 2, 2018

    According to the Bank of Japan’s quarterly Tankan business survey, sentiment among large manufacturers fell in the second quarter of 2018, suggesting economic momentum has yet to gain traction following a weak first quarter.

    Read more

  • Japan: Consumer confidence declines marginally in June

    June 29, 2018

    Consumer sentiment inched down to 43.7 in June from 43.8 in May, coming in just below market expectations of a stable print.

    Read more

  • Japan: Industrial production falls in May

    June 29, 2018

    Industrial production contracted 0.2% on a month-on-month and seasonally-adjusted basis in May, contrasting April’s revised 0.5% increase (previously reported: +0.3% month-on-month).

    Read more

  • Japan: Core inflation stable in May

    June 22, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in May, reversing April’s 0.1% fall. Core inflation was steady at 0.7% in May, unchanged from April and in line with market expectations.

    Read more

More news

Search form