Japan: Industrial production expands modestly in December
January 31, 2017
Industrial production expanded 0.5% in December compared to the previous month in seasonally-adjusted terms, below November’s 1.5% reading. December’s figure overshot analysts’ expectations of a 0.3% rise.
According to the Ministry of Economy, Trade and Industry, December’s growth in industrial production was driven by the transport equipment, chemicals and electronic parts and devices subsectors, while information and communication electronics equipment and general-purpose, production and business-oriented machinery subsectors subtracted from growth.
On an annual basis, industrial output rose 3.0% in December, below November’s 4.6% increase. The annual average variation in industrial production was minus 0.2% in December, up from the minus 0.7% registered in November.
The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a 3.0% month-on-month increase in January, ahead of the 2.2% growth forecast in the previous month’s survey. Manufacturers expect a more modest 0.8% rise in February.
Author: Christopher Thomas, Economist