Japan: Industrial production plummets in May
June 29, 2017
Industrial production fell 3.6% in May compared to the previous month in seasonally-adjusted terms, contrasting April’s 4.0% increase. May’s drop undershot market analysts’ expectations of a 3.0% decline and represented an over six-year low.
According to the Ministry of Economy, Trade and Industry, May’s decline in industrial production was driven by transport equipment, iron and steel as well as electronic parts and devices, in that order.
On an annual basis, industrial output rose 6.5% in May, coming in above April’s 5.7% increase and marking an over three-year high. Annual average growth in industrial production ticked up from 1.9% in April to 2.4% in May.
The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a 2.8% monthly increase in June, above the 1.8% expansion forecast in the previous month’s survey. Manufacturers, however, expect a 0.1% decline in July.