Japan: Industrial production rebounds in June
July 31, 2017
Industrial production rose 1.6% in June compared to the previous month in seasonally-adjusted terms, contrasting May’s 3.6% decrease. June’s print was broadly in line with the 1.5% rise that market analysts had expected.
According to the Ministry of Economy, Trade and Industry, June’s rise in industrial production was driven by transport equipment, chemicals (excluding drugs), electrical machinery, in that order.
On an annual basis, industrial output rose 4.9% in June, coming in below May’s 6.5% increase. Annual average growth in industrial production ticked up from 2.4% in May to 3.0% in June, which represented the highest reading since November 2014.
The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a 0.8% monthly increase in July, contrasting the 0.1% contraction forecast in the previous month’s survey. Manufacturers, expect a stronger 3.6% expansion in August.