Japan’s industrial production rose 1.8% mom in December, rebounding from prior month’s -0.9% mom contraction, but missed expectation of 2.4% mom.
Manufacturers have tempered expectations for the coming months, predicting a -6.2% mom drop in production in January, followed by a modest 2.2% mom increase in February. The Ministry of Economy, Trade and Industry maintains its assessment of “seesawing” on production.
As an METI official indicated, the recent Noto Peninsula earthquake’s impact on manufacturing appears minimal for January. However, production forecasts are clouded by the suspension of operations at Daihatsu due to issues with collision-safety test irregularities.
“Although we believe that the production sentiment of companies is gradually getting out of the bearish phase, for the time being, we need to pay attention to the impact of the suspension of auto manufacturers’ operation,” the official said.
In separate release, retail sales grew 2.1% yoy in December, well below expectation of 5.0% yoy.
