JP: All Industry Index


Sun Aug 20 23:30:00 CDT 2017

Actual Previous Revised
Month over Month 0.4% -0.9% -0.8%
Year over Year 2.2% 2.4% 2.5%

Highlights
Japan's All Industry Index advanced to a seasonally adjusted level of 105.2 in June, up 0.4 percent on the month after dropping by 0.8 percent in May. This index has alternated between monthly increases and decreases since the start of the year with a net gain of 1.4 percent over this period.

Today's data suggest activity diverged in the three major sectors of the economy in June. The index of tertiary activity, which accounts for around 73 percent of the total index, was unchanged on the month after a slight fall in May. Meanwhile, the index of industrial production, accounting for around 21 percent of the total, increased by 2.2 percent on the month in June, partly reversing a 3.6 percent decline in May. The index of construction industry activity, which accounts for around 6 percent of the total index, fell 1.7 percent on the month after an increase of 1.6 percent in May.

In year-on-year terms, the seasonally adjusted index advanced 2.2 percent in June after an increase of 2.5 percent in May. Using original unadjusted data, the index also rose 2.2 percent on the year in June, down from 3.2 percent in May.

The increase in the index of industrial production in June contrasts with the Nikkel Manufacturing PMI survey, which showed a fall in its headline index that month ahead of a further decline in July. A preliminary estimate for August will be published later this week. The Nikkei Services PMI survey showed a small increase in its headline index in June followed by a sharp decline in July.

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.