Japan’s industrial production rose by 3.0% mom in October, marking the second consecutive month of growth but falling short of market expectations of a 3.9% mom increase. This uptick is nonetheless an improvement from September’s 1.6% mom growth.
Out of the 15 industrial sectors surveyed, 11 sectors—including production machinery and motor vehicles—reported increased output, while four sectors, such as electronic parts and devices, experienced declines.
The Ministry of Economy, Trade and Industry maintained its previous assessment, stating that industrial production is fluctuating “indecisively.”
Looking ahead, the ministry projects that industrial output will decrease for two consecutive months, by -2.2% mom in November and a further -0.5% mom in December, likely dragged down by sectors like production machinery and transport equipment.
A ministry official expressed concern over “downside risks from overseas demand,” which could significantly impact the output of products like semiconductor manufacturing equipment and motor vehicles.
In additional economic data, retail sales increased by 1.6% yoy in October, missing expectations of a 2.1% yoy rise. Unemployment rate edged up from 2.4% to 2.5%, matching forecasts.
