Japan: Industrial production to decline in June – Nomura

Analysts at Nomura are forecasting a month-on-month decline in Japan’s June industrial production.

Key Quotes

“In the survey of manufacturers' production forecasts carried out on 10 June, the production forecast for June, adjusted for prediction error by the Ministry of Economy, Trade & Industry, was -0.1% m-o-m.”

“In months when the stock of items purchased index in the Japanese manufacturing PMI rises, industrial production tends to undershoot the adjusted production forecast figure and, on this basis, we think the result will be slightly weak.”

“Although there was an earthquake in northern Osaka in mid-June, we think this had a limited impact as the output index in the Japanese manufacturing PMI rose.”