October Industrial Production
Both performance and outlook positive; production making a comeback
November 28, 2014
Summary
◆The October 2014 indices of industrial production achieved growth for the second time in two months at 0.2% m/m, while at the same time exceeding market consensus (-0.6%), which had been expecting a downturn for this month – all in all positive results. METI’s production forecast survey has taken a positive view of November and December, and it appears that industrial production, which had been in decline since the beginning of 2014, is finally making a comeback.
◆As for production index performance by industry in October, six out of the total of fifteen industries experienced growth. Contribution to overall performance was most notable in the areas of general-purpose, production and business oriented machinery (+4.4% m/m), electronic parts and devices (+1.6%), and electrical machinery (+3.2%).
◆According to METI’s production forecast survey, industrial production is expected to continue its comeback, with November production plans seen up +2.3% m/m and December seen up +0.4%. Performance is expected to vary by industry, but overall, production is expected to continue its upward trend regardless of which industry.
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