Japan’s industrial production rose 2.2% mom in September, beating expectations of 1.6% and marking the first increase in three months. However, the Ministry of Economy, Trade and Industry kept its assessment unchanged, describing output as “fluctuating indecisively,” highlighting that the recovery remains fragile.
According to METI’s survey, manufacturers expect production to grow 1.9% mom in October but shrink -0.9% in November, pointing to continued short-term volatility.
Gains in September were broad-based, with 13 of 15 industrial sectors expanding. Notably, production machinery output surged 6.2% mom, driven by strong shipments of semiconductor manufacturing equipment to China and Taiwan. In contrast, transport equipment (excluding motor vehicles) and steel and non-ferrous metals recorded modest declines.
Meanwhile, retail sales rose 0.5% yoy, missing expectations of 0.7%, reflecting soft consumer demand despite improving wage and price trends.
