On Friday, Japan’s Ministry of Economy, Trade and Industry reported that industrial production in the country rose a seasonally adjusted 2.2% mom in March. After the February decline of 1.3%, a further decline of 2.0% was projected.
In annual terms, this volume increased by 4.0%, which also exceeded the forecast for growth of 1.0% after reducing by 2.0% a month earlier.
After the publication of these data, the Ministry raised its estimate of the volume of industrial production, announcing its growth.
Industries such as automotive, chemicals and plastics have contributed to this growth. On the other side of the scale, there is a drop in volumes in the production of electrical, commercial and industrial equipment.
The volume of supplies increased by 0.8% MoM by 3.9% YoY, while the volume of inventories increased by 0.1% MoM and fell by 10.1% YoY. The reserves ratio decreased by 0.8% MoM and 12.3% YoY.
Industries such as automotive, chemicals and iron have contributed to the growth in supply. It was counterbalanced by a drop in the production of electrical, commercial and industrial equipment.
Industries that have contributed to the increase in inventories include the automotive, commercial equipment and iron industries. It has been counterbalanced by a downturn in the production of electrical equipment, communications equipment, electronics and manufacturing equipment.
According to the ministry’s forecast, production is expected to rise by 8.4% in April and then fall by 4.3% in May. The production of hardware, electronic equipment and components is expected to contribute to this growth in April. The decrease in May will occur due to the fall in the volume of transport and production equipment.
In addition, the Ministry of Communications and Home Affairs said the seasonally adjusted headline CPI for the Tokyo area was down 0.4% in April from March. In annual terms, core inflation fell 0.6%.
Compared to last year, prices for food, fuel, health care and transportation have decreased. Housing, furniture, clothing, education and recreation have become more expensive.
The core CPI also declined seasonally adjusted 0.4% MoM and 0.2% YoY.
Japan’s seasonally adjusted unemployment rate was 2.6% in March, the ministry said. This is 2.9% less than the forecast (ie, unchanged from the February figures). The ratio of the number of vacancies to applicants was 1.10, which is higher than the 1.09 forecast. The labor participation rate remained stable at 61.9%.