Japan Industry


Japan: Industrial production in August drops for second consecutive month

September 30, 2015

In August, industrial production declined 0.5% over the previous month in seasonally-adjusted terms, which followed the revised 0.8% decrease recorded in July (previously reported: -0.6% month-on-month). August’s print, surprisingly, contrasted the 1.0% rise that market analysts had expected and represented the second consecutive drop.

According to the Ministry of Economy, Trade and Industry, the categories that made the greatest contributions to the monthly drop were general-purpose, production and business oriented machinery, electronic machinery as well as transport equipment. As a result of August’s drop, the government downgraded its basic assessment of industrial production, stating that output has weakened.

On an annual basis, industrial output rose 0.2% in August, which was above the flat reading tallied in the previous month. Annual average growth in industrial production inched up from minus 1.2% in July to minus 0.9% in August.

The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a month-on-month 0.1% expansion in September, which contrasted the 1.7% drop that was forecast in the previous month’s survey. Manufacturers expect a 4.4% expansion in October.

FocusEconomics Consensus Forecast panelists see industrial production expanding 0.5% in 2015, which is down 0.3 percentage points over the previous month’s projection. In 2016, the panel expects industrial production to rise 2.1%.

Author: Ricard Torné, Lead Economist

Sample Report

Looking for forecasts related to Industry in Japan? Download a sample report now.


Japan Industry Chart

Japan Industry August 2015

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