|Month over Month||-0.6%||0.7%|
|Year over Year||1.1%||1.6%|
Japan's All Industry Index dropped to a seasonally adjusted level of 103.4 in March, down 0.6 percent on the month after an unrevised increase of 0.7 percent in February. This is the second monthly decline in the index in the last three months and the biggest since May 2016.
This weakness in headline activity in March was broad-based. The index of industrial production fell 1.9 percent on the month, largely reversing the 3.2 percent gain seen in February, while the index of construction industry activity fell 0.5 percent on the month for the second consecutive month. Weakness in the tertiary industry also continued in March, with the index of activity for this sector dropping 0.2 percent after no change in February and modest declines in each of the previous two months.
In year-on-year terms, the seasonally adjusted index advanced 1.1 percent in March after an unrevised 1.6 percent in increase in February. Using unadjusted data, the index also rose 1.1 percent on the year in March after recording no change on the year in February.
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.
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.