Japan: Industrial production rebounds in July
August 29, 2014
In July, industrial production expanded 0.2% over the previous month in seasonally-adjusted terms, which contrasted the revised 3.4% decrease recorded in June (previously reported: -3.3% month-on-month). The print, however, was well shy of forecasts of a 1.0% increase.
According to the Ministry of Economy, Trade and Industry, the categories that made the greatest contribution to the monthly expansion were general-purpose, production and business oriented machinery, petroleum and coal products as well as textiles. The government maintained its general assessment, stating that industrial production in Japan is, “on a weaker note.”
On an annual basis, industrial output fell 0.9% in July, which contrasted the 3.1% increase tallied in the previous month and marked the lowest rate since June 2013. Annual average growth in industrial production ticked down from 4.7% in June to 4.4% in July.
Meanwhile, the Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a month-on-month 1.3% increase in August, which was above the 1.1% rise that was forecast in the previous month’s survey. In addition, manufacturers expect a 3.5% expansion in September.