MNI BRIEF: Japan Sept Factory Output Rises 1.4% M/M
MNI (TOKYO) - Japan's industrial output rose 1.4% m/m in September for the first rise in two months following August's 3.3% drop, thanks to higher production of motor vehicles and electric machinery and electronics, data released by the Ministry of Economy, Trade and Industry showed on Thursday.
Production of automobiles rose 7.1% m/m in September, the first rise in two months following August's 10.7% decline, while production of electric machinery, and information and communication electronics increased 2.2% from a 6.2% fall the prior month.
The September industrial data, an important factor for Bank of Japan economists to assess and predict the pace of the current modest economic recovery, supports BOJ’s view that industrial production has been more or less flat.
Based on its survey of manufacturers, METI projected that industrial production would rise 8.3% in October (revised up from +6.1% forecast last month) before falling 3.7% in November. Adjusting the upward bias in output plans, METI forecast production would rise 5.1% on month in October.
Based on this assumption and if December output were flat, production would rise 2.0% q/q over July-September, the first rise in two quarters following Q's 1.0% fall.