JP: All Industry Index

Tue Apr 24 23:30:00 CDT 2018

Actual Previous Revised
Month over Month 0.4% -1.8% -1.1%
Year over Year 1.1% 1.8%

Japan's All Industry Index advanced to a seasonally adjusted level of 105.3 in February, up 0.4 percent on the month after falling a revised 1.1 percent in January. Using original unadjusted data, the index rose 1.1 percent on the year in February, slowing from growth of 1.8 percent in January.

The increase in the headline index reflects was driven by stronger growth in the manufacturing sectors. The industrial production index, which accounts for around 21 percent of the total, increased 2.0 percent on the month in February, rebounding strongly from a fall of 4.5 percent in January. The other components of the headline index, however, suggest growth was weaker elsewhere in the economy The tertiary index, which accounts for around 73 percent of the total index, was flat on the month in February after falling 0.4 percent previously, while the index of construction industry activity, which accounts for around 6 percent of the total index, fell 0.3 percent on the month after increasing 0.3 percent previously.

The rebound in the index of industrial production in February contrasts with the Nikkei Manufacturing PMI survey, which showed a decline in its headline index that month. This was followed by a further all in the PMI survey's headline index in March, while a preliminary estimate for April, released earlier in the week, indicates it will increase this month. The weakness in the tertiary activity index reported today also contrasts with the Nikkei Services PMI survey, which showed an increase in its headline index in February followed by a further decline in March.

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.