Japan's industrial output rose 2.7% m/m in August for the third straight m/m rise and accelerated from +0.8% in July, thanks to higher production of production machinery, iron, steel and non-ferrous metals as well as chemicals, preliminary data released Friday by the Ministry of Economy, Trade and Industry showed.
Production of motor vehicles fell 1.1% m/m in August for the first drop in three months following +12.0% in July and +14.1% in June.
Based on its survey of manufacturers, METI projected that industrial production would rise 2.9% on month in September (revised up from +0.8% forecast last month) and then rise 3.2% in October.
Adjusting the upward bias in output plans, METI forecast production would fall 1.2% on month in September. Based on this assumption, production would rise 5.6% on quarter in July-September, the first rise in two quarters following -2.7% in Q2.
The METI upgraded its assessment, saying that industrial production is recovering moderately. The previous view was that production was marking time.