Japan: Industrial production rebounds in September
October 29, 2015
In September, industrial production expanded 1.0% over the previous month in seasonally-adjusted terms, which contrasted the 1.2% decrease recorded in August. September’s print, was a surprising contrast to the 0.6% drop that market analysts had expected.
According to the Ministry of Economy, Trade and Industry, the categories that made the greatest contributions to the monthly drop were chemicals, electronic parts and devices, as well as electrical machinery. As a result of September’s increase, the government upgraded its basic assessment of industrial production, stating that output was "moving sideways".
On an annual basis, industrial output fell 0.9% in September, which was below the 0.4% drop tallied in the previous month. Annual average growth in industrial production inched down from minus 1.0% in August to minus 1.1% in September.
The Survey of Production Forecast showed that manufacturers are becoming more pessimistic. They now expect industrial output to have recorded a month-on-month 4.1% expansion in October, which is below the 4.4% increase that was forecast in the previous month’s survey. Manufacturers expect a 0.3% drop in November.