JP: All Industry Index


Wed Sep 20 23:30:00 CDT 2017

Actual Previous Revised
Month over Month -0.1% 0.4% 0.2%
Year over Year 2.0% 2.2%

Highlights
Japan's All Industry Index fell to a seasonally adjusted level of 105.1 in July, down 0.1 percent on the month after increasing by a revised 0.2 percent in June. Using original unadjusted data, the index rose 2.0 percent on the year in July, down from 2.2 percent in June.

The drop in the headline index was driven by the industrial sector, which accounts for around 21 percent of the index. The index of industrial production fell 0.8 percent on the month in July after increasing by 2.2 percent in June, continuing the trend of alternate increases and decreases since the start of the year. This was partly offset by an improvement in the index of tertiary activity, which accounts for around 73 percent of the the total index. This index rose 0.1 percent on the month in July after declining 0.2 percent in June. The index of construction industry activity, which accounts for around 6 percent of the total index, was flat on the month after falling 1.4 percent in June.

The fall in the index of industrial production in July is in line with the Nikkel Manufacturing PMI survey, which also showed a fall in its headline index that month ahead of a small rebound in August. A preliminary estimate for September will be published in early October. The Nikkei Services PMI survey showed a sharp drop in its headline index in July followed by a further decline in August.

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.