MNI BRIEF: Jan Aug Factor Output Flat M/M; Auto Drops
Japan's industrial production was unchanged m/m in August following a 1.8% drop in July as higher production for electrical machinery and information, and communication electronics equipment offset the drop in automobile production, Ministry of Trade and Industry data showed Friday.
The August data was largely in line with the Bank of Japan's forecasts on industrial production holding steady. Automobile production fell 3.9% m/m in August for the first drop in three months following July's 0.6% gain, while electrical machinery, and information and communication electronics equipment rose 1.0% m/m in August, the first rise in two months following July's 3.3% fall.
Based on its survey of manufacturers, the ministry projected industrial production would rise 5.8% in September (revised up from +2.4% forecast last month) before rising 3.8% in October.
Adjusting the upward bias in output plans, the ministry forecasted production would rise 3.7% in September. Based on this assumption, production would rise 0.3% q/q in July-September, the second straight rise following Q2's 1.4% increase.
The METI left its assessment from the previous month, saying that industrial production is marking time.