Japan Industry October 2017

Japan

Japan: Industrial production rebounds in October

November 30, 2017

Industrial production rose 0.5% in October compared to the previous month in seasonally-adjusted terms, contrasting September’s 1.0% decrease. September’s print was well below the 1.8% expansion that market analysts had expected.

The categories that mainly contributed to the monthly increase were electrical machinery, transport equipment and general-purpose, production and business oriented machinery, in that order. Conversely, chemicals (excluding drugs), petroleum and coal products and electronic parts and devices had a negative contribution to industrial production growth.

On an annual basis, industrial output rose 5.9% in October, coming in above September’s 2.6% increase. Annual average growth in industrial production climbed from September’s 3.9% to 4.6% in October, which represented the highest reading since May 2014.

The Survey of Production Forecast showed that manufacturers are becoming more optimistic. They now expect industrial output to have recorded a 2.8% monthly increase in November, contrasting the 0.9% decrease forecast in the previous month’s survey. Manufacturers, expect a 3.5% expansion in December.

FocusEconomics Consensus Forecast panelists see industrial production rising 2.2% in 2018, which is up 0.2 percentage points over the previous month’s projection. For 2019 the panel expects industrial production to expand 1.7%.


Author: Ricard Torné, Lead Economist

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Japan Industry October 2017 0

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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