JP: All Industry Index


Tue Feb 20 22:30:00 CST 2018

Actual Previous Revised
Month over Month 0.5% 1.0%
Year over Year 1.8% 2.1% 2.0%

Highlights
Japan's All Industry Index advanced to a seasonally adjusted level of 106.3 in December, up 0.5 percent on the month after an increase of 1.0 percent in November. The index has now risen for three consecutive months. Using original unadjusted data, the index rose 1.8 percent on the year in December, slowing from growth of 2.0 percent in November.

The increase in the headline index reflects stronger activity in the industrial production index, which accounts for around 21 percent of the total. This increased by 2.9 percent on the month in December, up strongly from 0.5 percent in November. In contrast, the tertiary index, which accounts for around 73 percent of the total index fell by 0.2 percent after an increase of 1.1 percent previously, while the index of construction industry activity, which accounts for around 6 percent of the total index, fell 0.4 percent on the month after an increase of 0.3 percent in November.

The increase in the index of industrial production in December is broadly in line with the Nikkei Manufacturing PMI survey, which showed a solid rise in its headline index that month. This was followed by a further increase in the PMI survey's headline index in January. A preliminary estimate for February, also released today, indicates that the PMI manufacturing survey's headline index will fall in February but remain at a relatively strong level. The fall in the tertiary activity index reported today, however, contrasts with the Nikkei Services PMI survey, which showed a no change in its headline index in December followed by an increase in January.

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.