Tokyo, December 01, 2023, The Europe Today: Japan’s industrial output in October expanded 1 percent from the previous month, rising for the second consecutive month, supported by a recovery of memory chip production, government data showed Thursday.
The seasonally adjusted index of production at factories and mines stood at 104.6 against the 2020 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report. The rise followed an upwardly revised 0.5 percent increase in September.
The ministry maintained its basic assessment of industrial output since July, saying it “fluctuates indecisively.”
Of the 15 sectors covered by the survey, 10 reported increased production while five logged declines.
Among the 10, electronic parts and devices contributed the most to the output increase in the month, up 6.6 percent, led by memory chips widely used in personal computers and smartphones.
A ministry official noted, however, that output of semiconductors remained relatively low over a three-month period.
Motor vehicles also contributed significantly to the overall production increase in October, rising 2.0 percent due to strong compact and mini vehicle output, data showed.
Meanwhile, an output disruption at domestic production lines of Toyota Motor Corp in October affected overall motor vehicle output, with that of regular-sized cars dropping 4.0 percent, the official said.
Among the five sectors logging production declines, iron, steel and non-ferrous metals fell 1.1 percent, dragged down by special hot-rolled steel.
Output of petroleum and coal products dropped 2.7 percent, with a relatively warm winter expected.
The index of industrial shipments climbed 0.2 percent to 103.6, up for the second straight month, while that of inventories rose 0.8 percent to 104.4 for the first increase in three months.
Based on a poll of manufacturers, the ministry expects production to decline 0.3 percent in November and expand 3.2 percent in December.
The ministry official said the government is continuing to keep a close eye on downside risks overseas as higher interest rates could dampen capital investment and consumption.
