Japan Industrial

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Japan Industrial
Production!!!
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Japan Industrial Production

• Published by Ministry of Economy, Trade and
  Industry (METI), Japan
• Frequency Monthly
• Period Covered Prior month
• Volatility Low
• Market significance Moderate
• Web site http//www.meti.go.jp/english

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What is it?
Japan Industrial Production

• Measures output changes for the industrial sector
  of the economy.
• Measures production, demand, and the equipment
  needed for production.
• Tool for forecasting future GDP and economic
  performance.
• Used by central banks to measure inflation.

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Japan Industrial Production
What is it in the report?4 Indexs

• Industrial Production
• Value-added weight
• Production-value weight

• Producers Shipments
• Reveals the state of transactions (factory
  shipments) at the level of the producer

• Producers Inventory of Finished Goods
• Shows the state of product inventories remaining
  with the producer.

• Producers Inventory Ratio of Finished Goods
• Provides direct view of supply demand trends
  for products

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Why is it important?
Japan Industrial Production

• U.S. possess the largest and most self-sufficient
  economy in the world, thus, impervious to the ups
  and downs of foreign economic cycles.
• Healthy domestic economic performance depends on
  how well other nations are doing.
• Ranked 5th in the Top Ten Intl. Economic
  Indicators.

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Why is it important? (cont.)
Japan Industrial Production

• Explain changes in GDP.
• Highly sensitive to the business cycle and can
  often predict future changes in employment,
  earnings and personal income.
• Describes to what extent various industries
  participating in the pace of economics growth
  changes.

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Keys to Interpreting the Data
Japan Industrial Production

• Be aware that a preliminary report is published
  in the final week of the month following the
  month being covered.
• Notice that a revised report is released two to
  three weeks later.
• Indus. Prod. is expressed as percentage of real
  output (adjusted for inflation) relative to a
  base year.
• Pay attention to percent change of the level
  from month to month and how it compares with the
  percent trend of the economy at that time.

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Historical Data(Seasonally Adjusted)
Japan Industrial Production
Raw Data Obtained from METI Statistics
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Recent Data Analysis I Changes in Production
Japan Industrial Production

• Production has decreased in March by 0.6 from
  the previous month.
• Industries contributed to the decrease are
• General machinery
• Electrical machinery
• Fabricated metals

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Recent Data Analysis I Changes in Production
(cont.)
Japan Industrial Production

• Commodities contributed to the decrease are
• Semiconductor products machinery
• Cellular telephones
• Reaction vessels

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Recent Data Analysis IIProduction Forecast for
Apr. May
Japan Industrial Production

• According to the Survey of Production Forecast in
  Manufacturing, production is expected to increase
  by1.5 in April and 1.4 in May.
• Industries that will contribute to the increase
  in April are
• General machinery
• Electrical machinery
• Non-ferrous metals

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Recent Data Analysis IIProduction Forecast for
Apr. May (cont.)
Japan Industrial Production

• Industries that will contribute to the increase
  in May are
• Electronic parts and devices
• Transport equipment
• Information and communication electronics
  equipment

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Recent Data Analysis IIIChanges in Shipments
Japan Industrial Production

• Shipments in March decreased 1.5 from the
  previous month.
• Industries contributed to the decrease are
• General machinery
• Fabricated metals
• Electrical machinery

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Recent Data Analysis IVChanges in Inventory
Japan Industrial Production

• Inventory in March decreased 0.5 from the
  previous month.
• Industries contributed to the decrease are
• Transport equipment
• Electrical machinery
• Textiles
• Inventory ratio increased 1.8 from previous
  month.

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Recap of the Data Analysis
Japan Industrial Production

• Industrial production is on a moderately upward
  trend.
• Production, shipments inventory decreased.
• Inventory ratio increased.

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Recap of the Data Analysis (cont.)
Japan Industrial Production

• According to the Survey of Production Forecast in
  Manufacturing, production is expected to increase
  in April May.

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Latest Release
Japan Industrial Production

• New Industrial Structure Report
• 3 industrial groups
• Industries capable of surviving international
  competition such as the fuel cell industry and
  the digital consumer electronics industry
• Industries such as the health and welfare devices
  and services industry that meet market needs in
  keeping with social changes while at the same
  time creating jobs
• Industrial clusters for regional revitalization

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Latest Release (cont.)
Japan Industrial Production

• Industrial clusters for regional revitalization
• Advanced high-tech industry
• Development of new businesses in the
  manufacturing industry
• Innovation in regional service industries
• High value-added food industry

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This concludes our presentation. Presentation
completed by Amy Au Eunice Au For Econ
435 Professor Castillo