JP: All Industry Index


Tue Dec 19 22:30:00 CST 2017

Actual Previous
Month over Month 0.3% -0.5%
Year over Year 2.0% 1.0%

Highlights
Japan's All Industry Index advanced to a seasonally adjusted level of 105.0 in October, up 0.3 percent on the month after declining by 0.5 percent in September. This extends the pattern of alternate increases and declines in the seasonally adjusted index since the start of the year. Using original unadjusted data, the index rose 2.0 percent on the year in October, picking up from growth of 1.0 percent in September.

The increase in the headline index reflects stronger activity in two of the three component sectors. The index of industrial production, which accounts for around 21 percent of the headline index, increased by 1.5 percent on the month in October after falling by 1.0 percent in September, while the tertiary index, which accounts for around 73 percent of the the total index increased by 0.3 percent after a decline of 0.2 percent previously. The index of construction industry activity, which accounts for around 6 percent of the total index, fell 0.3 percent on the month in October after a drop of 2.3 percent in September.

The increase in the index of industrial production in October contrasts with the Nikkei Manufacturing PMI survey, which showed a small decline in its headline index that month. This, however, was followed by a sharp rebound in the PMI survey's headline index in November, with a preliminary estimate for December showing a further strong improvement in manufacturing conditions. The increase in the tertiary activity index reported today, however, is broadly in line with the Nikkei Services PMI survey, which showed a very strong increase in its headline index in October followed by a similarly sharp decline in October.

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.