Japan Industry September 2016

Japan

Japan: Industrial production flattens in September

October 31, 2016

In September, industrial production in Japan was flat over the previous month in seasonally-adjusted terms, which followed August’s 1.4% increase (previously reported: +1.5% month-on-month). September’s print undershot the 0.9% expansion that market analysts had expected.

According to the Ministry of Economy, Trade and Industry, the monthly print mainly reflected that gains in general-purpose, production and business-oriented machinery, transport equipment and chemicals were offset by a deterioration in information and communication electronics equipment, electronic parts and devices and fabricated metals. As a result of September’s reading, the government maintained its basic assessment of industrial production, stating that output was, "showing signs of increasing at a moderate pace."

On an annual basis, industrial output expanded 0.9% in September, following the previous month’s 4.5% increase. Annual average growth in industrial production rose from minus 1.2% in August to minus 1.0% in September.

The Survey of Production Forecast showed that manufacturers are becoming slightly less optimistic. They now expect industrial output to have recorded a month-on-month 1.1% increase in October, which was slightly below the 1.2% expansion that was forecast in the previous month’s survey. Manufacturers expect a 2.1% expansion in November.

FocusEconomics Consensus Forecast panelists see industrial production falling 0.9% in 2016, which is up 0.1 percentage points from the previous month’s projection. For 2017, the panel expects industrial production to rise 1.6%, which is unchanged from the previous month’s estimate.


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 September 2016

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