Japan: Industrial production to surge 0.9% mom in November - Nomura

Yusuke Miyairi, Research Analyst at Nomura, expects the November industrial production index to show a rise of 0.9% m-m for Japanese economy.

Key Quotes 

“Companies’ production plans had called for growth of 2.8% m-m in November. However, actual production tends to be lower than production plans, and adjusting this figure using realization and amendment ratios over the past three months gives growth of 0.9% m-m.” 

“Many indicators related to the industrial production index were strong in November. The Japanese manufacturing PMI output index improved 1.0pt m-m to 54.3, while the current conditions DI for manufacturers in the Economy Watchers Survey (seasonally adjusted) fell 0.7pt, but remained high at 55.4, suggesting favorable corporate sentiment. In addition, exports were strong for a wide range of goods, as real exports from Japan (estimated by Nomura), which have a strong correlation with the industrial production index, rose 4.4% m-m.”

“Given the above, while we estimate that production fell below plans in November, we believe it continued the rise seen in October.”