Japan: Industrial production rebounds in April
May 31, 2019
Industrial production rose 0.6% on a month-on-month and seasonally-adjusted basis in April, contrasting March’s 0.6% decrease (previously reported: -0.9% month-on-month). The print overshot the 0.2% increase that market analysts had expected.
The categories that drove the month-on-month increase were motor vehicles, production machinery and transport equipment (excluding vehicles), in that order. Higher output for these categories was partially offset by decreases in production of general-purpose and business-oriented machinery, electronic parts and devices as well as inorganic and organic chemicals.
On an annual basis, industrial output fell 1.1% in April, following the 4.3% decrease in March. Annual average growth in industrial production fell from March’s 0.2% to a flat reading in April.
The Survey of Production Forecast showed that manufacturers are slightly more optimistic. They now expect industrial output to have recorded a 5.6% monthly increase in May, up from the 3.6% increase forecast in the previous month’s survey. Manufacturers, however, expect a 4.2% decrease in May.
Japan Industrial Production Forecast
FocusEconomics Consensus Forecast panelists see industrial production rising 0.7% in 2019, which is down 0.4 percentage points over the previous month’s projection. For 2020 the panel expects industrial production to expand 1.0%.