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The Wilder View

Industrial Production Coming Back, But….

Japan’s industrial production “surged” 1.9% in June for its fifth monthly gain. From MarketWatch:

Japan’s industrial production index rose a seasonally adjusted 1.9% on month in July, the Ministry of Economy, Trade and Industry said Monday. The result was above a 1.6% on-month gain expected by economists polled in a Dow Jones Newswires and Nikkei survey, though it was still 22.9% below the year-ago level.

Alongside Japan, many developed economies are showing some rebound in industrial production, a measure of physical output.

ip_chart1.PNG

Wow, Japan is really experiencing a rebound in factory output. However, looking back a little farther back in time, one really sees how low is industrial output. At the trough (February 2009 for Japan), production fell back to levels not seen since:

  • 1998 in the US
  • 1992 in the UK
  • 1997 in Canada
  • 1999 in Germany
  • 1987 in Italy
  • 1983 in Japan

ip_chart2.PNG

Yup, Japan’s down hard. It’s gonna take a huge push in demand to get production levels back.


Originally published at News N Economics and reproduced here with the author’s permission.

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