Japan Industry May 2017


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.

FocusEconomics Consensus Forecast panelists see industrial production rising 3.5% in 2017, which is unchanged over the previous month’s projection. For 2018, the panel expects industrial production to expand 1.8%.

Author: Ricard Torné, Lead Economist

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Japan Industry Chart

Japan Industry May 2017

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.

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