Japan's Industrial Production Rebounds In August

Sep 28, 2007 - Japan's August industrial output increased for the first time in two months, driven by higher production of transport equipment, electronic parts and devices and general machinery, the Ministry of Economy, Trade and Industry said Friday.

The ministry upgraded its assessment of industrial output saying, " Industrial Production is on a moderately upward trend." In July, the ministry said that Production appeared to be flat.

The industrial production index increased 3.4% in August from the previous month compared to a decline of 0.4% in July. This marked the highest growth in eight months.

On an annual basis, industrial output rose 4.3% in August, after climbing 3.2% in the previous month. Commodities that mainly contributed to the increase are large passenger cars, drive, transmission and control parts and small passenger cars.

Based on the survey, the Ministry forecasted that the production would decrease 0.8% in September and increase 4.1% in October. In the August survey, production was projected to fall 2.5% in September.

Transport equipment, information and communication electronics equipment, and general machinery industries are expected drag output in September. However, these industries are projected do better in October, the Ministry said.

The shipment index rose 4.3% from the previous month in August compared to a drop of 1.2% in the prior month. The monthly fall in July remained Unrevised. The shipping activity grew for the first time in two months. The index climbed 4.3% annually compared to the 3.1% growth in the prior month.

The industries that mainly contributed to the increase in shipping activity are Transport equipment, Electronic parts & devices, and Electrical machinery.

The inventory index increased 0.3% on a monthly basis in August compared to a fall of 0.1% in the previous month. The inventory index recorded an increase for the first time in four months. The index rose 2.2% in August compared to a increase of 2.4% in the previous month.

The inventory ratio declined 1.0% in August from the previous month, following a decline of 1.4% in the previous month. Annually, the ratio increased 0.9% in August, after a fall of 0.6% in July.