Japan Industry December 2019

Japan

Japan: Industrial production rebounds in December

January 31, 2020

Industrial production increased 1.3% in December on a month-on-month and seasonally-adjusted basis, contrasting November’s 1.0% decrease and surpassing the 0.7% increase expected by market analysts.

The categories that drove the month-on-month expansion were production machinery, general-purpose and business orientated machinery, and electronic parts and devices, in that order. On the other hand, production of motor vehicles and other transport equipment declined.

On an annual basis, industrial production dropped 3.0% in December, after decreasing 8.2% in November. The annual average variation in industrial production was unchanged at minus 2.8% in December.

The Ministry of Economy, Trade and Industry’s survey showed that manufacturers are growing optimistic. Manufacturers project industrial production to increase 3.5% in January, up from their December projection of a 2.5% increase, and they see industrial output rising 4.1% in February.

FocusEconomics Consensus Forecast panelists see industrial production expanding 0.3% in 2020, which is down 0.5 percentage points over the previous month’s projection. For 2021 the panel expects industrial production to increase 1.0%.


Author:, Economist

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Japan Industry December 2019

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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