JP: All Industry Index


Tue Jun 20 23:30:00 CDT 2017

Actual Previous Revised
Month over Month 2.1% -0.6% -0.7%
Year over Year 2.5% 1.1% 0.9%

Highlights
Japan's All Industry Index advanced to a seasonally adjusted level of 105.4 in April, up 2.1 percent on the month after a revised decline of 0.7 percent in March. After declines in the index in two of the first three months of the year, this increase in April is the largest month-on-month gain since mid-2011.

Activity strengthened in all three major sectors of the economy in April. The index of construction industry activity, which accounts for around 6 percent of the total index, rose 7.3 percent on the month, more than reversing the cumulative impact of declines in five of the previous six months and contributing 0.45 percentage points to the 2.1 percent headline increase. The index of industrial production, accounting for around 21 percent of the total index, also rebounded strongly in April, up 4.0 percent on the month after falling by 1.9 percent in March, and contributing 0.81 percentage points to the headline increase. Finally, the index of tertiary industry activity, accounting for around 73 percent of the total index, rose 1.2 percent on the month. This was the first month-on-month increase in this index since November last year and contributed 0.85 percentage points to the headline increase.

In year-on-year terms, the seasonally adjusted index rose 2.5 percent in April after a revised 0.9 percent increase in March. Using unadjusted data, year-on-year growth in the index picked up from 1.0 percent in March to 1.9 percent in April.

Today's data indicates a strong start to business activity in the current quarter, including a strong rebound in construction activity after several months of weakness. The increase in the index of industrial production is consistent with PMI survey data which showed improved conditions in the manufacturing sector in April, but the gain in the index of tertiary industry activity contrasts with a fall in the service sector PMI's headline index that month. More up-to-date PMI survey data for May showed the headline index increasing that month for both the manufacturing and services sectors.

Definition
The All Industry Index takes a reading of activity in the tertiary index combined with activity in the construction, agricultural and fisheries industries, the public sector and industrial output. This index is considered a close approximation for gross domestic product growth as measured by industrial and service sector output.

Description
The all industry index evaluates the monthly change in overall production by all sectors of the Japanese economy. The index includes the tertiary index which is released a few days before the all industry plus the construction, agricultural and fisheries industries, the public sector and industrial output. The index closely follows Japanese GDP and overall growth figures, providing insight into current levels of Japanese economic expansion.