Japan Industrial Output Climbs 1.5% In August

Industrial output in Japan gained 1.5 percent on month in August, the Ministry of Economy, Trade and Industry said on Friday.

That beat forecasts for an increase of 0.5 percent following the 0.4 percent decline in July.

On a yearly basis, output jumped 4.6 percent – also topping forecasts for a gain of 3.4 percent after sliding 4.2 percent in the previous month.

Upon the release of the data, the METI upgraded its assessment of output to showing signs of increase at a moderate pace.

Industries that mainly contributed to the increase included electronic parts and devices; communication electronics equipment; and chemicals.

Industries that were down included transport equipment; petroleum and coal products; and fabricated metals.

Shipments were down 1.3 percent on month and up 1.5 percent on year.

Industries that mainly contributed to the decrease included transport equipment; business oriented machinery; and iron and steel.

Industries that mainly contributed to the increase were electronic parts and devices; communication electronics equipment; and non-ferrous metals.

Inventories added 0.1 percent on month and fell 1.8 percent on year.

Industries that mainly contributed to the increase were transport equipment; business oriented machinery; and petroleum and coal products.

Industries that mainly contributed to the decrease were iron and steel; non-ferrous metals; and ceramics, stone and clay products.

According to the survey of production forecast, output is expected to rise 2.2 percent in September and 1.2 percent in October.

Industries that mainly contributed to the increase in September included business oriented machinery; transport equipment; and chemicals.

Industries that mainly contributed to the increase in October included electronic parts and devices; electrical machinery; and transport equipment.

Also on Friday, the Ministry of Internal Affairs and Communications said:

• The average of household spending in Japan was down 4.6 percent on year in August, coming in at 276,338 yen. That missed expectations for a decline of 2.3 percent following the 0.5 percent fall in July.

The average of monthly income per household stood at 480,083 yen, up 1.5 percent on year. The average of consumption expenditures per household was 301,442 yen, down 4.5 percent on year.

• The jobless rate in Japan came in at a seasonally adjusted 3.1 percent in August. That was above forecasts for 3.0 percent, which would have been unchanged from the previous month.

The job-to-applicant ratio was 1.37 – in line with expectations and unchanged from the July reading. The participation rate was steady at 60.3 percent.

• Overall consumer prices in Japan were down 0.5 percent on year in August. That matched expectations following the 0.4 percent decline in July.

Core CPI, which excludes food prices, also was down 0.5 percent – in line with expectations and unchanged from the previous month.

On a monthly basis, overall inflation and core CPI both were flat.

Overall inflation in the Tokyo region, considered a leading indicator for the nationwide trend, was down 0.5 percent on year in September – matching expectations and unchanged from the previous month.

Core CPI was also down 0.5 percent versus forecasts for -0.4 percent, which would have been unchanged.

On a monthly basis, overall CPI was up 0.1 percent and core inflation eased 0.1 percent.

by RTT Staff Writer

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