Japan’s industrial production rose 0.5% mom in May, slightly below expectations of 0.6% mom, according to preliminary data released by the Ministry of Economy, Trade and Industry. The seasonally adjusted production index rose to 103.0 against the 2020 base of 100, extending the recovery in manufacturing activity despite the modest downside surprise.
Production gains were led by transport equipment, which increased 4.6% mom, and inorganic and organic chemicals, up 3.7% mom. Looking ahead, manufacturers remain optimistic, forecasting output to rise 3.7% in June before leveling off in July. The outlook suggests factories expect production to remain supported despite lingering uncertainty over global demand and trade conditions.
Separate labor market data showed the unemployment rate holding steady at 2.5% in May, while the job availability ratio eased slightly from 1.18 to 1.17, indicating there were still 117 job openings for every 100 job seekers.
| Indicator | Previous | Latest | Consensus |
|---|---|---|---|
| Industrial Production (MoM) | 0.5% | 0.5% | 0.6% |
| Manufacturers’ Output Forecast (June) | — | +3.7% | — |
| Manufacturers’ Output Forecast (July) | — | 0.0% | — |
| Transport Equipment Output (MoM) | — | +4.6% | — |
| Inorganic & Organic Chemicals Output (MoM) | — | +3.7% | — |
| Unemployment Rate | 2.5% | 2.5% | 2.5% |
| Job Availability Ratio | 1.18 | 1.17 | — |
