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MNI BRIEF: Japan's Sep Output Drops First Time in Four Months

(MNI) Tokyo
(MNI) Tokyo

Japan's industrial output fell 1.6% m/m in September for the first m/m drop in four months, preliminary data released Monday by the Ministry of Economy, Trade and Industry showed.

The fall followed a 3.4% rise the previous month and was driven by weaker production of motor vehicles, inorganic and organic chemicals, and production machinery .

Production of motor vehicles fell 12.4% m/m in September for the second straight month, following a decline of 1.3% in August, underscoring the gloomy outlook for automobile production due to the shortage of semiconductors.

Industrial production rose 5.9% q/q in the third quarter for the first rise in two quarters following a drop of 2.7% in the second quarter.

Based on its survey of manufacturers, METI projected that industrial production would fall 0.4% on month in October (revised down from a forecast of 3.2 % growth last month) and rise 0.8% in November.

Adjusting the upward bias in output plans, METI forecast production would fall 3.7% on month in October. Based on this assumption, and if December output were flat, production would fall 3.1% q/q in the December quarter, the first drop in two quarters following an increase of 5.9% in Q3.

The METI left its assessment unchanged, saying that industrial production is recovering moderately.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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