AI Data Insight
Japan's latest released Q3 (July) industrial production index dropped to 91.4, showing a severe decline of up to 17% compared to the previous value of 110.6, breaking below the long-term moving average. Although market consensus originally expected a milder pullback, the actual data showed a much more severe impact, affected by supply chain disruptions caused by the strong earthquake in Kyushu and rising costs fueled by the Middle East situation. Looking ahead, it is necessary to closely monitor whether AI-related demand can drive traditional manufacturing to restart its recovery momentum.