JP: All Industry Index

Mon Jan 22 22:30:00 CST 2018

Actual Previous Revised
Month over Month 1.0% 0.3%
Year over Year 2.1% 2.0% 1.8%

Japan's All Industry Index advanced to a seasonally adjusted level of 105.9 in November, up 1.0 percent on the month after an increase of 0.3 percent in October. This is the strongest increase since April and the first time the seasonally adjusted index has risen for consecutive months since the start of 2017.Using original unadjusted data, the index rose 2.1 percent on the year in November, accelerating from growth of 1.8 percent in October.

The increase in the headline index reflects stronger activity in all three component sectors. The index of industrial production, which accounts for around 21 percent of the headline index, increased by 0.5 percent on the month in November, matching the increase recorded in October, while the tertiary index, which accounts for around 73 percent of the total index increased by 1.1 percent after a decline of 0.2 percent previously. The index of construction industry activity, which accounts for around 6 percent of the total index, rose for the first time in four months in November, up 0.6 percent on the month after a drop of 0.4 percent in October.

The increase in the index of industrial production in November is broadly in line with the Nikkei Manufacturing PMI survey, which showed a strong advance in its headline index that month. This was followed by a further increase in the PMI survey's headline index in December, with a preliminary estimate for January scheduled for release later this week. The increase in the tertiary activity index reported today, however, contrasts with the Nikkei Services PMI survey, which showed a very strong drop in its headline index in November followed by another decline in December.

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.