MNI BRIEF: Japan Nov Factory Output Hits 2nd Straight Rise
MNI (TOKYO) - Japan's industrial output rose 3.0% m/m in October for the second straight rise following September's 1.6% gain, thanks to higher production machinery, motor vehicles and fabricated metals, data released by the Ministry of Economy, Trade and Industry showed on Friday.
Production of automobiles rose 6.4% m/m in October for the second straight rise following 7.1% in September and production machinery rose 21.7% in October for the first rise in two months following the prior month's 1.7% fall.
However, Bank of Japan officials remain vigilant against the outlook for production. The survey showed the sector will likely record a flat Q4 over the previous quarter.
Based on its survey of manufacturers, the ministry projected that industrial production would fall 2.2% in November (revised up from -3.7% forecast last month) before further falling 0.5% in December.
Adjusting the upward bias in output plans, the Ministry forecasted production would fall 4.1% m/m in November following -0.3% in Q3. Based on this assumption, production would be unchanged from the previous quarter in October-December, compared with -0.3% in July-September.