Japan Macro Updates

The One Stop Portal for Japan Macroeconomic Data. Simplified and Summarized!

We simplify and summarize key data so that you don’t have to spend hours reading confusing and long media releases. Read key economic releases and major events here in under 2 minutes. And we will explain the key takeaway for you. Stay informed and form a robust view on macroeconomic matters to aid your successful investment decisions

30th May 2024

Japan Industrial Production

Key takeaway: Generally speaking, Industrial Production has remained subdued in Japan. The latest release for Industrial Production Indexes in Japan showed that Production decreased 0.1% m-o-m in April. This was also much lower than consensus estimates which were calling for an increase of 1.5%. However, the decrease also comes on the back of a strong Industrial Production print the previous month March. In fact, the March figure was revised up from 3.8% to 4.4%. Industrial production had remained weak in the first quarter of 2024. A significant factor had been some of the shut downs witnessed in the Automobile industry early in the year. However, with auto production  having normalized, industrial activity was expected to continue gaining momentum.  Hence the negative 0.1% print for April comes as a surprise. In any case, monthly prints of Industrial Production tend to be volatile. In general, industrial production has been relatively soft in Japan. With inflation trending sideways and no clear indications on a sustainable consumption growth trend, BoJ’s task on monetary policy path remains tough.  

29th Apr 2024

Key takeaway: Industrial production Indexes usually fluctuate significantly. Hence it is very difficult to make meaningful inferences based on individual monthly data points. However, generally if you zoom back, you will notice trendlines in production and manufacturing activity, shipments and inventories which turn downwards during periods of weakness in the economy and vice versa. Generally speaking, Industrial Production has remained subdued in Japan. The latest release for Industrial Production Indexes in Japan showed that Production increased by a healthy 3.8% m-o-m in March. This was also higher than consensus estimates which were calling for an increase of 3.3%. However, the sharp increase also comes on the back of weak Industrial Production prints in January and February (see comments below). Similarly, Shipments rose a healthy 4.3% and Inventories rose 1.1% in March. Overall though, industrial production has remained weak in the first quarter of 2024. Retail Sales also fell 1.2% m-o-m in March suggesting domestic activity remained muted. However, with the auto production shutdowns witnessed earlier in the year having normalized, industrial activity is expected to continue gaining momentum. Separately, as the global semi-conductor cycle strengthens, production in the semi conductor industry is likely to improve as well giving a boost to overall IP in Japan.   

29th Mar 2024

Key takeaway: Industrial production Indexes usually fluctuate significantly. Hence it is very difficult to make meaningful inferences based on individual monthly data points. However, generally if you zoom back, you will notice trendlines in production and manufacturing activity, shipments and inventories which turn downwards during periods of weakness in the economy and vice versa. Generally speaking, Industrial Production has remained subdued in Japan. The latest release for Industrial Production Indexes in Japan showed that Production fell slightly by 0.1% in February from the previous month. Similarly, shipments also decreased 0.4%. Inventories increased 0.6% m-o-m. The production numbers were weaker than consensus estimates. The drop though was mostly attributable to production shutdowns in the automotive sector and can be considered a one off event. Separately, as the global semi-conductor cycle strengthens, production in the semi conductor industry is likely to improve as well giving a boost to overall IP in Japan. Retail Sales for the month of February came in stronger than expected and hence even with a weak IP, Japanese monetary policy is likely to stay its course (with the recent increase in rates).    

28th Feb 2024

Key takeaway: Industrial production Indexes usually fluctuate significantly. Hence it is very difficult to make meaningful inferences based on individual monthly data points. However, generally if you zoom back, you will notice trendlines in production and manufacturing activity, shipments and inventories which turn downwards during periods of weakness in the economy and vice versa. The latest release for Industrial Production Indexes in Japan showed that Production fell sharply by 7.5% in January from the previous month. Similarly, shipments also decreased 8.3%. Inventories declined a moderate 1.8% m-o-m.  

31st Jan 2024

Key takeaway: Industrial production Indexes usually fluctuate significantly. Hence it is very difficult to make meaningful inferences based on individual monthly data points. However, generally if you zoom back, you will notice trendlines in production and manufacturing activity, shipments and inventories which turn downwards during periods of weakness in the economy and vice versa. The latest release for Industrial Production Indexes in Japan showed that Production increased 1.8% in December from the previous month. Similarly, shipments also increased 2.6%. Inventories on the other hand declined 1.2% m-o-m.  

For Japan, the indexes of industrial production capture the production, shipment and the inventory situation of the mining and manufacturing industries. The indexes enable users to perceive production activities of business establishments in mining and manufacturing, supply and demand trends of produced products, and production plans for manufacturers, two months ahead as well as production-related facilities and their operational statuses. These indexes are highly detailed and are classified by business types and goods and hence can also be used to grasp production trends. Data are published every month. The data are based mainly on the “Current Survey of Production” conducted by METI (Ministry of Economy, Trade and Industry)

Japan Industrial Production METI