Japan Industry January 2017


Japan: Industrial production falls to eight-month low in January

February 28, 2017

Industrial production fell 0.8% in January compared to the previous month in seasonally-adjusted terms, contrasting December’s 0.7% increase. January’s figure undershot analysts’ expectations of a 0.4% rise.

According to the Ministry of Economy, Trade and Industry, January’s drop in industrial production was driven by the transport equipment, chemicals (excluding drugs) and general-purpose, production and business oriented machinery, while the electronic parts and devices, plastic products and pulp, paper and paper products subsectors added to growth.

On an annual basis, industrial output rose 3.2% in January, matching December’s result. Annual average growth in industrial production swung from minus 0.2% in December to plus 0.4% in January.

The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a 3.5% monthly increase in February, above the 0.8% expansion forecast in the previous month’s survey. Manufacturers expect a 5.0% drop in March.

FocusEconomics Consensus Forecast panelists see industrial production rising 1.8% in 2017, which is up 0.2 percentage points from the previous month’s forecast. For 2018, the panel expects industrial production to expand 1.5%.

Author: Ricard Torné, Lead Economist

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Japan Industry Chart

Japan Industry January 2017

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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