MNI BRIEF: Jan-Oct Factory Output Posts Second Straight Rise
Japan's industrial production rose 1.0% m/m in October for the second straight rise following a 0.5% rise in September, thanks to higher production of motor vehicles and electronic parts and devices, data released by the Ministry of Trade and Industry showed on Thursday.
The October data was largely in line with the Bank of Japan's view that industrial production has been more or less flat, and the outlook is solid, possibly supporting a moderate recovery.
Production for automobiles rose 2.0% m/m in October for the second straight rise following 6.0% in September. Manufacture of electronic parts and devices rose 6.6%, the first rise in two months following September's 0.2% fall.
Based on its survey of manufacturers, METE projected industrial production would fall 0.3% in November (revised from -2.8% forecast last month) before rising 3.2% in December. Adjusting the upward bias in output plans, METI now forecasts production to fall 1.9% in November. Based on this assumption, production would rise 0.9% q/q in Q4, the first rise in two quarters following -2.1% in Q3.
The METI left its assessment from the previous month, noting industrial production is marking time.