Industrial production in Japan climbed 2.9 percent month-on-month in October 2018, following a 0.4 percent drop in the previous month and compared to expectations of a 1.2 percent increase, preliminary data showed. Output rebounded for: transport equipment (+4.6 percent vs -1.7 percent in September), iron & steel (+2.9 percent vs -2.4 percent), electrical machinery & electronics (+5.1 percent vs -2.8 percent), ceramics & stone (+0.8 percent vs -0.7 percent), plastics (+1.7 percent vs -1.3 percent), and pulp & paper (+2.2 percent vs -1.8 percent). Also, output expanded at a faster rate for: fabricated metals (2.3 percent vs 1.5 percent) and general purpose machinery (6.9 percent vs 2.5 percent). In contrast, production dropped sharply for petroleum & coal products (-5.3 percent vs + 1.7 percent). On an annual basis, output soared 4.2 percent after declining by 2.5 percent in the previous month. Industrial Production Mom in Japan averaged 0.41 percent from 1953 until 2018, reaching an all time high of 6.80 percent in May of 2011 and a record low of -16.50 percent in March of 2011.
Industrial Production Mom in Japan is expected to be 0.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production Mom in Japan to stand at 0.10 in 12 months time. In the long-term, the Japan Industrial Production MoM is projected to trend around 0.10 percent in 2020, according to our econometric models.