Japan: Industrial production falls in August
September 30, 2014
In August, industrial production declined 1.5% over the previous month in seasonally-adjusted terms, which contrasted the revised 0.4% increase recorded in July (previously reported: +0.2% month-on-month). The print, however, was well shy of forecasts of an August 0.2% increase.
According to the Ministry of Economy, Trade and Industry, the categories that made the greatest contribution to the monthly contraction were general-purpose, production and business oriented machinery, transport equipment as well as electrical machinery. The government maintained its general assessment, stating that industrial production in Japan is, “on a weaker note.”
On an annual basis, industrial output fell 2.9% in August, which followed the 0.7% decrease tallied in the previous month and marked the lowest rate since June 2013. Annual average growth in industrial production ticked down from 4.5% in July to 4.3% in August.
Meanwhile, the Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a month-on-month 6.0% increase in September, which was above the 3.5% rise that was forecast in the previous month’s survey. In addition, manufacturers expect a 0.2% decline in October.