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.