Japanese industrial production unexpectedly shrinks in January

Japanese industrial production unexpectedly shrank in January amid declining output of transport equipment, chemicals and business oriented machinery.

Total output fell by 0.8% over the month, according to the Ministry of Economy, Trade and Industry, and was 3.2% higher versus January 2016.

Economists had penciled in an advance of 0.4% on the month.

In comparison to December, shipments declined by 0.4% while inventories were unchanged.

Meanwhile, the inventory ratio rose 1.7% month-on-month to 111.4.

Production was expected to increase in February and decrease in March, METI said, referencing the Survey of Production Forecast in Manufacturing.