TOKYO (MaceNews) – Japan’s industrial production posted a third consecutive month to month rise in August, led by demand for passenger cars, steel products and integrated circuit chips, as the domestic and global economies continue to recover gradually from the slump caused by the coronavirus pandemic, data released Wednesday by the Ministry of Economy, Trade and Industry showed.
The key points from the latest data:
* Industrial production rose 1.7% on month in August, coming in stronger than the consensus forecast of +1.5%, and following a 8.7% rise in July. Production fell between February and May, with a steep 9.8% decline in April.
* The level of the Index of Industrial Production remained low at 88.7 (100 in the 2015 base year), compared to 99.8 at the start of the year. From a year earlier, IIP fell 13.3% in August for an 11th straight year-on-year drop after falling 15.5% in July.
*Based on its survey of manufacturers, METI projected that industrial production would rise 5.7% on month in September (revised up from +1.9% forecast last month) and gain a further 2.9% in October. Adjusting the upward bias in output plans, METI forecast production would rise at a slower pace of 2.8% on month in September.
*METI revised up its assessment, saying, “Production is picking up.” The ministry also warned about the impact of the recent spike in domestic coronavirus infections.
*In August, shipments rose 2.1% month on month for the third straight rise while inventories dipped 1.4% for the fifth consecutive monthly decline, both indicating a gradual pickup from the sharp drop in economic activity seen earlier this year.