Japan's industrial output drop? Why is the stock market up?

Japan's industrial index is a measure of the output of the country's industrial sector. It is calculated by the Ministry of Economy, Trade and Industry (METI) and is based on data from a sample of businesses in the manufacturing, mining, and utilities industries.

The industrial index is a leading indicator of economic activity, meaning that it tends to rise before other economic indicators, such as GDP. This is because industrial production is often one of the first sectors of the economy to respond to changes in demand.

A rising industrial index suggests that the economy is growing and that businesses are expanding their production. A falling industrial index suggests that the economy is slowing down and that businesses are cutting back on production.

The latest industrial output in July saw a contraction of -2.0% from the previous month.

If that's the case, why is the Nippon Index one of the best-performing indices in the world this year?

This drop is just a blip, as based on a poll of manufacturers, he ministry expects output to climb 2.6 percent in August and rise 2.4 percent in September.

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