Japan: Industrial production weakens in June - Nomura

Japan's industrial production fell 2.1% m-m in June, falling far short of the consensus forecast (Bloomberg survey median), which called for a 0.3% decline, notes the research team at Nomura.

Key Quotes

“Of the 15 sectors surveyed, production was down m-m at 12, with the exceptions being iron & steel, electronic parts & devices, and transport equipment. The broad-based extent of the decline suggests it is not attributable to special factors in particular sectors.”

“That said, industrial production for April through June rose 1.2% q-q, more or less offsetting the 1.3% q-q decline recorded in Jan-Mar. The survey of production forecasts indicates that manufacturers anticipate m-m increases of 2.7% and 3.8% in July and August, respectively.”

“Adjusting these figures using realization and amendment ratios over the past three months gives a Jul-Aug average of +0.5% growth versus Apr-Jun, suggesting moderate but continued growth.”