Japan’s preliminary industrial production for May 2022 came in at -7.2% m/m much lower than the expected -0.3% m/m and the April reading of -1.5%. Two years ago, deep in the pandemic industrial production was -4.2% m/m. Production in the auto sector continues to suffer from a global parts supply crunch as output of cars and other motor vehicles suffer. Earlier today Toyota reported they missed its production targets for May with overall production levels through the first five months of the year falling 9.7% yr/yr.
Japan Industrial Production for May 2022 (preliminary)
Japan Industrial Production for May (preliminary)
- -7.2% m/m expected -0.3% m/m, prior -1.5%
- -2.8 % y/y expected -5.9% y/y, prior -4.9%
- Second straight month of decrease in industrial output
- Steepest pace since May 2020
Industries that mainly contributed to the decrease
- Motor vehicles (-8.0 percent vs -0.7 percent in April),
- Chemicals, excl. inorganic, organic chemicals, and medicine (-7.9 percent vs 4.3 percent)
- Electrical machinery and information and communication electronics equipment (-11.3 percent vs 5.1 percent).
Industries that mainly contributed to the increase
- Inorganic and organic chemicals,
- Petroleum and coal products.
Shipments
Industries that mainly contributed to the decrease
- Motor vehicles,
- Electrical machinery, and Information and communication electronics equipment,
- General-purpose and business-oriented machinery, in that order.
Industries that mainly contributed to the increase
- Petroleum and coal products,
- Inorganic and organic chemicals,
- Electronic parts and devices.
Inventories
Industries that mainly contributed to the increased
- General-purpose and business-oriented machinery,
- Pulp, paper and paper products,
- Other manufacturing, in that order.
Industries that mainly contributed to the decreased
- Motor vehicles,
- Chemicals (excl. Inorganic, organic chemicals, and medicine),
- Electrical machinery, and Information and communication electronics equipment, in that order.
Indices of Industrial Production Forecast
METI Outlooks:
Manufacturers expect
For one month ahead:
- see June output +12.0% m/m
For 2 months ahead:
- see July output +2.5% m/m
Industries that mainly contributed to the increased in June
1.Production machinery, 2.Electrical machinery, and Information and communication electronics equipment, 3.Transport equipment, in that order.
Industries that mainly contributed to the increased in July
1.Transport equipment, 2.Production machinery, 3.General-purpose and business oriented machinery, in that order.
Source: Ministry of Economy Trade & Industry (METI)
From The TradersCommunity News Desk