Japan industrial output rises for second month

Trade ministry data showed factory output rose 1.4 percent month-on-month in October, compared with economists’ median estimate for a 1.9 percent gain in a Reuters poll and 1.1 percent increase in the previous month. The recent data suggests that the Japanese economy is headed for a modest recovery over the current quarter, after it slipped into recession for a second straight quarter.

The data also showed the service-sector output index edged up by a seasonally adjusted 0.2 per cent in October on a monthly basis, slowing from a revised 1.1 per cent gain in September.

Earlier this month, official figures showed that Japan’s gross domestic product (GDP) shrank 0.2 per cent in the July-September period, or an annualised contraction of 0.8 per cent, marking the second straight quarterly decline.

According to the ministry’s Survey of Production Forecast in Manufacturing, Japanese industrial production is expected to increase 0.2 percent in November and to decrease 0.9 percent in December, both month on month.

“Fine weather and a rise in Chinese tourists helped spur retail sales, which have held firm since summer despite some weakness in items such as home appliances”.

In October, the industrial output of Japan grew for the second consecutive month.

The ministry maintained its assessment on factory output to say it is seesawing.