The 'flash' reading for Japan's Industrial Production for February ... misses for the m/m and y/y

-2.1% m/m

  • expected -1.3% m/m, prior 4.3%

-2.6% y/y

  • expected -1.8% y/y, prior -5.2%

The fall in output is likely partly due to the global shortage of automotive chips. A decline in auto production is especially impactful in Japan. February is the 17th consecutive drop, so its not entirely due to the chip short shortage, nor the February 13 earthquake that also weighed on supply chains.

Manufacturers' outlooks:

  • March seen at -1.9% m/m
  • April output is seen at +9.3% m/m