Japan's industrial production continued to rebound for the seventh straight month responding to the increase in world demand which encouraged Japanese manufacturers to enhance productivity. Industrial production remains lower than last year's levels as manufacturers still not using full capacity.
Monthly industrial production in Japan final reading rebounded 2.1% in September compared with a previous incline by 1.4%. Industrial production declined -18.4% from a year earlier from a prior decline by -18.9%. Capacity utilization final reading came in at 1.6% in September less than the previous 2.3%.
Shipments rose 4.2% in September compared with 0.6% in August, while shipments remain 16.8% less than the same period last year. Inventories fell 0.4% from an incline by 0.1% and it remains 12.1% less than a year earlier.
Demand from Japan's main trade partners is advancing gradually, having the U.S market and the European market showing signs of recovery in demand. On the other hand, demand from other Asian countries like China that grew 8.9% in the third quarter and South Korea that expanded 2.9%, supported sales for Japanese companies.
However, even if we witnessed world demand picking up, manufacturers in Japan still afraid of using full capacity as world recovery appeared to remain fragile, that was why the G 20 summit recommended to maintain stimulus plans in markets to guarantee a strong and sustained recovery. Factories in Japan are using only two thirds of capacity according to the Cabinet Offices measures of trade volume.
Further gains in the industrial output are anticipated, especially that world trade continued to improve along with recovering markets around the world which means Japanese exports will rise followed by a rebounding production.
Moreover, the labor market should be responding to the rebounding manufacturing sector as more labor shall be hired, worth mentioning that jobless rate in Japan reached 5.3% that is pressuring household spending and consumption levels.
On the other hand, consumer confidence rose to 40.8 in October compared with 40.7 in September, and it came higher than analyst's estimates of 40.5. Consumer confidence households settled at 40.5 less than the anticipated 40.6%.
Households remain concerned about the pace of recovery amid high unemployment rate and low wages. The government's incentives for buying fuel efficient cars and electronics maybe started to wane so the economy maybe suffering from a slowing recovery by next year.
Finally, the Japanese gross domestic product will be released next week and it is expected to show economic growth accelerated in the third quarter after the economy expanded an annual 2.3% in the quarter ended June backed by improving exports and rebounding industrial production, in addition to the government's stimulus plan of 25 billion yen that focused on households and infrastructure projects.
Monthly industrial production in Japan final reading rebounded 2.1% in September compared with a previous incline by 1.4%. Industrial production declined -18.4% from a year earlier from a prior decline by -18.9%. Capacity utilization final reading came in at 1.6% in September less than the previous 2.3%.
Shipments rose 4.2% in September compared with 0.6% in August, while shipments remain 16.8% less than the same period last year. Inventories fell 0.4% from an incline by 0.1% and it remains 12.1% less than a year earlier.
Demand from Japan's main trade partners is advancing gradually, having the U.S market and the European market showing signs of recovery in demand. On the other hand, demand from other Asian countries like China that grew 8.9% in the third quarter and South Korea that expanded 2.9%, supported sales for Japanese companies.
However, even if we witnessed world demand picking up, manufacturers in Japan still afraid of using full capacity as world recovery appeared to remain fragile, that was why the G 20 summit recommended to maintain stimulus plans in markets to guarantee a strong and sustained recovery. Factories in Japan are using only two thirds of capacity according to the Cabinet Offices measures of trade volume.
Further gains in the industrial output are anticipated, especially that world trade continued to improve along with recovering markets around the world which means Japanese exports will rise followed by a rebounding production.
Moreover, the labor market should be responding to the rebounding manufacturing sector as more labor shall be hired, worth mentioning that jobless rate in Japan reached 5.3% that is pressuring household spending and consumption levels.
On the other hand, consumer confidence rose to 40.8 in October compared with 40.7 in September, and it came higher than analyst's estimates of 40.5. Consumer confidence households settled at 40.5 less than the anticipated 40.6%.
Households remain concerned about the pace of recovery amid high unemployment rate and low wages. The government's incentives for buying fuel efficient cars and electronics maybe started to wane so the economy maybe suffering from a slowing recovery by next year.
Finally, the Japanese gross domestic product will be released next week and it is expected to show economic growth accelerated in the third quarter after the economy expanded an annual 2.3% in the quarter ended June backed by improving exports and rebounding industrial production, in addition to the government's stimulus plan of 25 billion yen that focused on households and infrastructure projects.
