Japan: Industrial production grows in November
December 28, 2016
Industrial production in Japan expanded 1.5% in November compared to the previous month in seasonally-adjusted terms, above October’s revised 0.0% reading (previously reported: +0.1% month-on-month). November’s figure slightly undershot analysts’ expectations of a 1.6% rise.
According to the Ministry of Economy, Trade and Industry, November’s growth in industrial production was driven by the general-purpose, production and business-oriented machinery, transport equipment and electrical machinery subsectors, while the ceramics, stone and clay products, plastic products and pulp, paper and paper products subsectors subtracted from growth.
On an annual basis, industrial output rose 4.6% in November, contrasting October’s 1.4% fall (previously reported: -1.3% year-on-year) and marking the fastest growth rate since March 2014. Annual average growth in industrial production was minus 0.7% in November, up from the 0.9% decline registered in October.
The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a 2.0% mom increase in December, contrasting the 0.6% contraction forecast in the previous month’s survey. Manufacturers expect a 2.2% rise in January 2017.
Author: Oliver Reynolds, Economist