Japan Industry

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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.

FocusEconomics Consensus Forecast panelists see industrial production expanding 4.3% in 2014, which is down 0.5 percentage points over the previous month’s projection. In 2015, the panel expects industrial production to rise 2.6%.


Author: Ricard Torné, Lead Economist

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Japan Industry July 2014

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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