Japan Dec factory output rises on production machinery
A worker checks machinery at a factory in Higashiosaka, Japan June 23, 2022. REUTERS/Sakura Murakami/File Photo
TOKYO (Reuters) -Japan’s industrial output rose in December, government data showed on Wednesday, lifted by machinery production although a safety scandal at Toyota (NYSE:TM)’s small-car unit threatened to weigh heavily on future output.
Industrial production rose 1.8% in December from the previous month, data from the Ministry of Economy, Trade and Industries (METI) data showed. The reading was below the median market forecast for a 2.4% rise followed by 0.9% contraction in November.
General-purpose and business-oriented machinery output jumped 9.3% in December from the previous month. Strong demand for conveyer belts and testing equipment contributed to the increase.
Production machinery also went up 4.3% month-on-month in December. The output of semiconductor manufacturing equipment increased 6.2% while exports to China, South Korea and Taiwan rose, a METI official said.
Japan’s exports surged to record highs in December, with shipments to the United States soaring to their strongest-ever level and China-bound exports logging their first rise in more than a year.
Manufacturers surveyed by the industry ministry expected seasonally adjusted output to decrease 6.2% in January and climb 2.2% in February. METI maintained its assessment of industrial production as «seesawing.»
A powerful earthquake that hit Japan’s Noto Peninsula on New Year’s Day appears to have had limited impact on manufacturers’ production plans in January, the METI official said.
At the same time, a production halt at the small car specialist Daihatsu over rigged collision-safety tests is expected to weigh on January’s production forecast, the METI official said.
«Although we believe that the production sentiment of companies is gradually getting out of the bearish phase, for the time being, we need to pay attention to the impact of the suspension of auto manufacturers’ operation,» the official said.
Other data showed Japanese retail sales expanded 2.1% in December from a year earlier. It marked the 22nd straight month of increase but fell short of the median market forecast for a 4.7% rise.
Compared with the previous month, retail sales shrank 2.9% in December, following a 1.1% gain in November, the data showed.
