The preliminary
estimates by the Ministry of Economy, Trade and Industry (METI) showed Friday
that the industrial production in Japan edged down 0.1 per cent m-o-m in
February, following an unrevised 6.7 per cent m-o-m decline in January. Economists
had forecast an advance of 1.4 per cent m-o-m
The METI said
that the main contributors to the February slip were lower production in such
industries as Motor vehicles, Production machinery, and Transport equipment
(excluding motor vehicles). On the contrary, Chemicals (excluding Inorganic,
organic chemicals, and medicine), Pulp, paper and paper products, and Ceramics,
stone and clay products had the biggest positive impact on the reading.
In y-o-y terms,
Japan’s industrial output decreased 3.4 per cent in February after a 1.5 per cent
drop in the previous month. This marked the fourth straight annual fall, the
pace of which was also the sharpest since September 2023.
The METI also revealed
that shipments declined 0.4 per cent m-o-m and 4.4 per cent y-o-y in February,
while inventories rose 0.6 per cent m-o-m but fell 1.7 per cent y-o-y.
According to
the survey of production forecast, industrial production is projected to surge 4.9
per cent m-o-m in March and 3.3 per cent m-o-m in April.