Japan: Industrial output deteriorates in March
Latest reading: Industrial output fell 1.1% in month-on-month seasonally adjusted terms in March, which contrasted February’s 2.3% increase and was a sharper drop than markets had expected. An explosion at an auto parts plant may have affected output. The sectors making the largest negative contributions to industrial production in March included automobiles, electronics plus information and communication machinery.
On an annual basis, industrial output declined 0.3% in March, contrasting February’s 0.1% uptick. Meanwhile, the trend improved notably, with the annual average variation of industrial production coming in at minus 1.5%, up from February’s minus 2.1%.
Outlook: Our panelists have grown increasingly pessimistic on the outlook for Japan’s 2025 industrial production growth, with our Consensus down by 1.3 percentage points since the start of the year.