By Alfred Sadek
The electronics industry is one of the most important manufacturing industries in Japan and an essential export component to the economy. Although the rise of China and other east Asian countries as producers of electronic products has shifted some of the manufacturing away from Japan, the country remains a significant innovator and manufacturer of electronic products globally.
In this article, we look at the development of electronic product manufacturing in Japan using a dataset from the Japanese Electronics and IT Industries Association, a dataset which we recently added to the Macrobond database.
There’s been a clear downward trend in the development of total electronic product manufacturing in Japan for the past 20 years. The chart below shows a 3-month moving average and trend line.
Electronic product production tends to move together with exports – the strong correlation between the yearly change in Japan’s exports and electronic products manufacturing is obvious in the chart below, with a correlation coefficient of 0,802. Growth in both manufacturing and exports was already declining in recent years, and that trend has been exacerbated by the onset of the coronavirus pandemic. Exports rebounded slightly in July, so we will probably see a similar rebound in manufacturing when the data is released. If you click “track updates” below the chart, you can save it in our free chart viewing app, Macrobond Live, where it will automatically update with new data.
As you can see in the chart below, where we’ve plotted a regression best fit line for the two variables using Macrobond’s analytics engine, the latest data points since the onset of the corona crisis are clear outliers, as well as those after the 2008 financial crisis.
To get an overview of the total manufacturing of electronic products and the level of granularity in this database, take a look at the table below. The chart also reveals by how much each component have declined YoY and MoM.
Below, you can find a list of all the data that’s been added to the Macrobond database in just the past 2 weeks.
Data Additions by Region
- New Zealand
- United States