Japan’s industrial production fell by 3.2pc in December 2020 compared to the previous year, according to Japan’s Ministry of Economy, Trade, and Industry (METI).
The country’s shipments declined by 3.4pc in December 2020 compared to the previous year while the inventory index dropped more sharply by 8.4pc and the inventory ratio declined by 3.1pc during the same period.
METI’s The seasonally adjusted production and shipments indexes decreased by 1.6pc to 93.2 and 92.3, respectively, in December 2020 compared to November. Seasonally adjusted inventories, though, gained by 1.1pc to 95.3 and the inventory ratio index increased by 2pc to 113.6. In December 2020, softness in machinery, motor vehicles, and electrical machinery contributed to the decrease in production, METI indicated.
Japan’s production is expected to increase in January and decrease in February according to the Survey of Production Forecast in Manufacturing. Industrial production is projected to gain 8.9pc in January from the previous month, before falling by 0.3pc in February. Iron, steel, and non-ferrous metals have a 2.2pc upswing expectation for January and an increase of 2pc for February.