| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | -1.5% | -2.3% to -0.3% | -1.6% | 1.7% | 2.1% |
| Year over Year | -0.7% | -5.3% to 0.4% | -0.9% | 4.0% | 4.4% |
Highlights
Japan July Industrial Output -1.6% M/M (June Revised Up To +2.1% From +1.7%); 1st Drop In 2 Months; Median Forecast -1.5% (Range: -2.3% To -0.3%); 9 Out of 15 Industries Post Gains, 6 Are Down
Japan July Industrial Output-0.9% Y/Y (June Revised Up To +4.4% From +4.0%), 1st Drop In 2 Months; Median Forecast -0.7% (Range: -5.3% To +0.4%)
Japan METI Keeps View: Industrial Output Taking One Step Forward, One Step Back
Japan METI Forecast Index: Aug Industrial Output -1.7% M/M (Adjusted For Upward Bias), Sept -0.3%
Japan July Industrial Output M/M Drop Led by Auto Industry, Makers of Semiconductor-Producing Equipment
Japan July Industrial Output-0.9% Y/Y (June Revised Up To +4.4% From +4.0%), 1st Drop In 2 Months; Median Forecast -0.7% (Range: -5.3% To +0.4%)
Japan METI Keeps View: Industrial Output Taking One Step Forward, One Step Back
Japan METI Forecast Index: Aug Industrial Output -1.7% M/M (Adjusted For Upward Bias), Sept -0.3%
Japan July Industrial Output M/M Drop Led by Auto Industry, Makers of Semiconductor-Producing Equipment
Market Consensus Before Announcement
Key forecast points:
--Japan’s industrial production is forecast to slip back 1.5% on the month in July after marking its first rise in three months in June with a solid 2.1% gain (revised up from +1.7%) as the uncertainty over both global and domestic demand lingers even in the wake of trade deals between Tokyo and Washington, news of which appeared to come in a little too late for firms to digest.
--Factory output is seen down 0.7% on year after marking a solid 4.0% rise in June and falling 2.4% in May, which was the first drop in five months.
--The monthly survey by the Ministry of Economy, Trade and Industry released last month indicated that output would output would slip 1.0% in July before rising 0.8% in August, led by production machinery as well as iron/steel and non-ferrous metals.
--METI is likely to maintain its assessment (the last change was an upgrade in July 2024), saying industrial output is"taking one step forward and one step back.”
--Japan’s industrial production is forecast to slip back 1.5% on the month in July after marking its first rise in three months in June with a solid 2.1% gain (revised up from +1.7%) as the uncertainty over both global and domestic demand lingers even in the wake of trade deals between Tokyo and Washington, news of which appeared to come in a little too late for firms to digest.
--Factory output is seen down 0.7% on year after marking a solid 4.0% rise in June and falling 2.4% in May, which was the first drop in five months.
--The monthly survey by the Ministry of Economy, Trade and Industry released last month indicated that output would output would slip 1.0% in July before rising 0.8% in August, led by production machinery as well as iron/steel and non-ferrous metals.
--METI is likely to maintain its assessment (the last change was an upgrade in July 2024), saying industrial output is"taking one step forward and one step back.”
Definition
Industrial Production measures the physical output of the nation's factories, mines and utilities. Factories manufacture various products, and the industrial production indexes have been prepared as a comprehensive indicator of wide-ranging production activities for such products and are regarded as some of the most important among economic indexes.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios.
Industrial production provides key industry data for this export-dependent economy. The data are issued twice a month-a preliminary estimate at the end of the month for the preceding month and a revised estimate about two weeks later. All products, whether sold domestically or abroad, are included in the calculation of industrial production. Industrial production is highly sensitive to the business cycle and can often predict future changes in employment, earnings and income. For these reasons industrial production is considered a reliable leading indicator that conveys information about the overall health of the economy. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
Industrial production provides key industry data for this export-dependent economy. The data are issued twice a month-a preliminary estimate at the end of the month for the preceding month and a revised estimate about two weeks later. All products, whether sold domestically or abroad, are included in the calculation of industrial production. Industrial production is highly sensitive to the business cycle and can often predict future changes in employment, earnings and income. For these reasons industrial production is considered a reliable leading indicator that conveys information about the overall health of the economy. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
