Japan Industry March 2016


Japan: Industrial production in March recovers strongly and hit a nearly-five-year high

April 28, 2016

In March, industrial production jumped 3.6% over the previous month in seasonally-adjusted terms, which contrasted the revised 5.2% decrease tallied in March (previously reported: -6.2% year-on-year). February’s print exceeded the 2.8% expansion that market analysts had expected and represented the highest print since June 2011. Nevertheless, the jump in industrial production partially reflects a seasonal effect stemming from the Lunar New Year holidays and compensates for February’s multi-year low

According to the Ministry of Economy, Trade and Industry, the categories that made the greatest contributions to the monthly increase were transport equipment, general-purpose, production and business oriented machinery as well as fabricated metals. As a result, the government maintained its basic assessment of industrial production, stating that output was "moving sideways."

On an annual basis, industrial output rose 0.1% in March, which contrasted the 1.2% decrease tallied in the previous month. Annual average growth in industrial production inched up from minus 1.2% in February to minus 1.0% in March.

The Survey of Production Forecast showed that manufacturers are becoming less optimistic. They now expect industrial output to have recorded a month-on-month 2.6% increase in April, which was worse than the 5.7% rise that was forecast in the previous month’s survey. Manufacturers expect a 2.3% decrease in May.

FocusEconomics Consensus Forecast panelists see industrial production expanding 0.5% in 2016, which is down 0.1 percentage points over the previous month’s projection. For 2017, the panel expects industrial production to rise 1.6%.

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 March 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: Core inflation inches up in June

    July 20, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in June, up from May’s flat reading. Core inflation was up a notch to 0.8% in June from 0.7% in May, which was in line with market expectations.

    Read more

  • 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

More news

Search form