JP: All Industry Index


Wed Mar 21 23:30:00 CDT 2018

Actual Previous Revised
Month over Month -1.8% 0.5% 0.6%
Year over Year 1.8% 1.8% 1.9%

Highlights
Japan's All Industry Index fell to a seasonally adjusted level of 104.5 in January, down 1.8 percent on the month after dropping 0.6 percent in December. Using original unadjusted data, the index advanced 1.8 percent on the year in January, slowing slightly from growth of 1.9 percent in December.

The decline in the headline index reflects weaker activity in both the services and manufacturing sectors. The industrial production index, which accounts for around 21 percent of the total, fell 6.8 percent on the month in January after an increase of 2.9 percent in December, while the tertiary index, which accounts for around 73 percent of the total index fell by 0.6 percent after no change previously. In contrast, the index of construction industry activity, which accounts for around 6 percent of the total index, rose 1.7 percent on the month after an decline of 0.8 percent in December.

The fall in the index of industrial production in January contrasts with the Nikkei Manufacturing PMI survey, which showed a strong increase in its headline index that month. This, however, was followed by a fall in the PMI survey's headline index in February, while a preliminary estimate for March, also released today, indicates it will drop again this month. The fall in the tertiary activity index reported today also contrasts with the Nikkei Services PMI survey, which showed an increase in its headline index in January followed by an increase in February.

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.