JP: All Industry Index

Mon Nov 20 22:30:00 CST 2017

Actual Previous Revised
Month over Month -0.5% 0.1% 0.2%
Year over Year 1.0% 1.7%

Japan's All Industry Index declined to a seasonally adjusted level of 104.7 in September, down 0.5 percent on the month after advancing by 0.2 percent in August. 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 1.0 percent on the year in September, slowing from growth of 1.7 percent in August.

The decrease in the headline index was broad-based, with declines in all three component sectors. The index of industrial production, which accounts for around 21 percent of the headline index, fell by 1.0 percent on the month in October after increasing by 2.0 percent in August, while the tertiary index, which accounts for around 73 percent of the the total index fell by 0.2 percent after a decline of 0.1 percent previously. The index of construction industry activity, which accounts for around 6 percent of the total index, fell 2.2 percent on the month in September after a similar drop of 2.2 percent in August.

The fall in the index of industrial production in September contrasts with the Nikkei Manufacturing PMI survey, which showed a sharp increase in its headline index that month ahead of a small decline in October. A preliminary estimate for the PMI index for November will be published later this week. The fall in the tertiary activity index, however, is in line with the Nikkei Services PMI survey, which showed a drop in its headline index in September followed by a sharp rebound in October.

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.