Japan Nov. Industrial Output Down 1.1 Pct

December 28, 2018

Tokyo--Industrial production in Japan fell 1.1 pct from the previous month in November, down for the first time in two months, the Ministry of Economy, Trade and Industry said in a preliminary report Friday.

The seasonally adjusted production index for the manufacturing and mining sectors stood at 104.7 against 100 for the base year of 2015.

The November result was better a median forecast of a 1.9 pct drop among 16 economic research institutes surveyed by Jiji Press.

The decline followed the 2.9 pct increase in October, when companies boosted production activities to make up for a decrease traced to a series of natural disasters in summer, according to the ministry.

The ministry kept its assessment unchanged, saying that industrial production is picking up mildly.

The industrial shipment index stood at 103.1, down 1.4 pct, and the inventory index at 101.5, up 0.2 pct.

No impact from U.S.-China trade friction has been confirmed, according to the ministry. But an official at its Research and Statistics Department said companies' production plans show that they are "somewhat cautious" ahead.

In November, production fell at eight of the 15 sectors covered by the ministry survey.

Production plunged 11.0 pct for general-purpose and business-use machinery, such as steam turbines. Output went down 2.2 pct for pulp, paper and paper products, 2.1 pct for electric, and information and communications equipment, and 1.7 pct for electronic parts and devices.

Meanwhile, production grew at the remaining seven sectors, including oil and coal products makers, and production machinery makers.

For October-December, the ministry expects industrial production to increase from the previous quarter, thanks to the sharp growth in October. Jiji Press