Japan’s June industrial production rises twice in 3 months, stays above expectations

Industrial production in Japan during the month of June rose for the second time in almost three months, staying well above market expectations. This is indeed, a sign that the country’s manufacturing sector is reviving after having suffered major earthquake attacks earlier this year.

Industrial production rose 1.9 percent in June following a 2.6 percent decline in May, data released by the Ministry of Economy, Trade and Industry (METI) showed Friday. A median estimate of market participants had anticipated a rise of 0.6 percent. However, compared to a year earlier, industrial output declined 1.9 percent, official data showed.

The sectors that majorly contributed to the monthly rise in industrial output included chemicals, transport equipment and fabricated metals. Shipments were up 1.2 percent on month in June and down 2.2 percent on year.

Moreover, upon release of the data, METI upgraded its assessment of industrial production saying that it continues to fluctuate indecisively but shows signs of increasing in parts. In the METI's survey of production forecast, output is expected to rise 2.4 percent in July and 2.3 percent in August.

Meanwhile, inventories remained flat on month and on year. Industries that moved higher included iron and steel; transport equipment; and electrical machinery. Industries that moved lower included business oriented machinery; chemicals; and non-ferrous metals.