Japan’s industrial output rebounds as car factories restart
Japan’s industry ministry maintained its assessment despite September’s 2.2% production rise, with further gains expected in October and November.
- Japan's industrial output increased by 2.2% in September, the first monthly rise in three months.
- The rebound was primarily driven by the recovery in vehicle manufacturing, with the automobile sector expanding by 5.5%.
- Car factories restarted production after being forced to shut down due to a major earthquake and typhoons in previous months.
- The ministry's report also projects further output increases for October and November.
Japan’s industry ministry maintained its assessment that industrial production “fluctuates indecisively”, even as output rose 2.2% in September from August. It was the first monthly increase in three months.
Its preliminary report, released on Friday (October 30), also set out expected increases in manufacturers’ output of 5.1% in October and 0.8% in November.
The recovery in vehicle manufacturing helped lift September’s overall production as factories reopened after a major earthquake in Kumamoto Prefecture and typhoons had forced shutdowns.
These disruptions had depressed August output.
Passenger cars larger than minivehicles recorded a 3.3% production increase, while the automobile sector as a whole expanded 5.5%.
Problems with copper electrolysis equipment, meanwhile, brought a 1.6% decline in production in the steel and non-ferrous metals sector.
It was one of seven sectors where output fell, whereas eight of the 15 surveyed sectors posted gains.
On a base of 100 for 2020, the seasonally adjusted production index covering manufacturing and mining stood at 104.1.
The inventory and shipment indices increased 2.5% and 0.6%, respectively.
[Copyright The Jiji Press, Ltd.]
