JP: All Industry Index


Tue May 22 23:30:00 CDT 2018

Actual Previous
Month over Month 0.0% 0.4%
Year over Year 1.1% 1.1%

Highlights
Japan's All Industry Index was steady at a seasonally adjusted level of 105.3 in March, unchanged on the month after increasing 0.4 percent in February. Using original unadjusted data, the index advanced 1.1 percent on the year in March, unchanged from the growth recorded in February.

The stability in the headline index in April reflects some divergence between sectors. The industrial production index, which accounts for around 21 percent of the total, increased 1.4 percent on the month in March after an increase of 2.0 percent in February. Activity, however, was reported to have contracted elsewhere in the economy. The tertiary index, which accounts for around 73 percent of the total index, fell 0.3 on the month in march after increased 0.1 percent in February, while the index of construction industry activity, which accounts for around 6 percent of the total index, fell 0.8 percent on the month after dropping 0.3 percent previously.

Weaker growth in the index of industrial production in March is broadly in line with the Nikkei Manufacturing PMI survey, which showed a decline in its headline index that month. This was followed by a strong increase in the PMI survey's headline index in April, while a preliminary estimate for May, also released today, indicates it will decline this month. The decline in the tertiary activity index reported today is also consistent with the Nikkei Services PMI survey, which showed a drop in its headline index in March followed by a strong rebound in April.

Today's data also point to a decline in economic growth for the three months to March. The All Industry Index fell 0.4 percent on the quarter in the three months to March after an increase of 0.7 percent in the three months to December, with weakness across all three sectors but particularly in the industrial index, which fell sharply 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.