- Yoshiki Shinke (Dai-ichi Life Research Institute)
Japan's industrial production went up for a third consecutive month in October, with a slight add just beating the median forecast of economists, since the nation's exports compensate for weak domestic spending as well as fanning hopes of a gradual recovery in the country's manufacturing sector. According to the Ministry of Economy, Trade and Industry data, industrial production went up 0.1% from September while median estimate of economists forecast a decline of 0.1%. Moreover, industrial production was revised sharply higher in September to reflect 0.6% growth. The preliminary estimate just two weeks prior showed no change in the headline reading. The sharp revision reflects the volatile nature of the monthly data series.
In the meantime, Japan's manufacturing sector has returned to growth after a prolonged contraction earlier this year that was made worse by devastating earthquakes in the southern part of the country. The IHS Markit/Nikkeimanufacturing PMI surged above 50 in September and has remained above that key market ever since. A PMI figure above 50 signifies expansion in economic activity.
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