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Japanese production index slid in January as industrial output shrank

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Japanese production index slid in January as industrial output shrank

Japan's seasonally adjusted all-industry activity index declined 0.2% to 105.5 in January, following a downwardly revised fall of 0.6% in the previous month, data from the country's Ministry of Economy, Trade and Industry showed.

Industrial production fell 3.5% to 100.3 in January after edging down 0.1% to 103.9 in December 2018. Meanwhile, tertiary industry activity was up 0.4% at 106.5 following a downwardly revised 0.5% fall to 106.1 in the prior month. Construction activity rebounded 2.8% to 110.8 in January after a downwardly revised 2.4% decrease to 107.8 in the previous month.

On a year-over-year basis, the country's seasonally adjusted all-industry activity index rose 0.7% in January.

While Japan's services sector continued to expand in the first quarter of 2019, the country's manufacturing activity declined into contraction territory, marked by falls in production and business confidence amid concerns of weaker growth in China and prolonged global trade frictions.