Japan: Industrial output growth speeds up in September
Industrial output grew 4.0% month-on-month in seasonally-adjusted terms in September (August: +1.0% mom).
On an annual basis, industrial production fell 9.0% in September, a softer contraction than August’s 13.8% decline and marking the best result since March. Meanwhile, the trend pointed down, with the annual average variation of industrial production coming in at minus 10.9% in September, down from August’s minus 10.0%.
Regarding the outlook, Hiromichi Shirakawa and Takashi Shiono, economists at Credit Suisse, commented:
“Looking beyond the 3Q, industrial production is foreseen to lose its steam somewhat unless final demand surges, as restocking during summer starts to impact. Moderation of export growth and peaking sales of domestic durables will weigh on production. […] The METI projection survey as of September hinted at another gain in industrial production in October, but at a slower pace (+1.4%).”