JP: All Industry Index


Wed Oct 18 23:30:00 CDT 2017

Actual Previous
Month over Month 0.1% -0.1%
Year over Year 1.7% 2.0%

Highlights
Japan's All Industry Index advanced to a seasonally adjusted level of 105.1 in August, up 0.1 percent on the month after falling by 0.1 percent in July. This index has alternated between seasonally adjusted monthly increases and declines since the start of the year. Using original unadjusted data, the index rose 1.7 percent on the year in August, slowing from growth of 2.0 percent in July.

The increase in the headline index was driven by the industrial sector, which accounts for around 21 percent of the headline index. The index of industrial production increased by 2.0 percent on the month in August after falling by 0.8 percent in July. This was offset by the tertiary index, which accounts for around 73 percent of the the total index and which declined by 0.2 percent on the month after an increase of 0.1 percent in July. The index of construction industry activity, which accounts for around 6 percent of the total index, fell 2.3 percent on the month in August after gaining 0.2 percent in July.

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

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.