— Japan Industrial Output Posts 1st M/M Rise in 6 Months

TOKYO (MNI) – Japanese industrial production posted an unrevised
1.0% rise in November from October, marking the first rise in six
months, data from the Ministry of Economy, Trade and Industry showed on
Tuesday.

The rise was led by higher output of passenger cars as well as
electronic parts and devices, as seen in preliminary data released last
month.

Last month METI reported its survey of firms’ forecasts, which
showed that production will rise by 3.4% m/m in December — revised
up from the 1.5% gain estimated in the previous month’s survey —
before increasing by 3.7% in January (first estimate).

METI repeated last month, “Industrial production is weakening.”

Output of transportation machinery including automobiles, which
carry a heavy weighting in the index, rose a revised 4.5% m/m
(preliminary +4.4%), posting the first gain in seven months.

Also, production of electronic parts and devices rose a revised
3.2% m/m (preliminary +3.1%), the first gain in six months.

Compared with the year earlier level, production in November 2010
showed an unrevised +5.8% y/y, accelerating from +4.3% in October. It
has recovered from the record 38.6% drop in February 2009. The 6.4% rise
in December 2009 was the first y/y gain in 15 months.

Other details from the latest data:

Shipments: Nov revised +2.6% m/m (preliminary +2.5%) vs. Oct -3.0%
m/m, posting the first m/m rise in five months. The rise was led by
increases in transport equipment, iron and steel and electronic parts
and devises.

Inventories: Nov revised -1.8% m/m (preliminary -1.7%) vs. Oct
-1.0% m/m, marking the second straight monthly drop. The fall in
inventories was led by decreases in information and communication
equipment, chemical products and food and tobacco.

The food, tobacco and medical sectors were added to revised data.

The inventory-to-shipments ratio: Nov revised -8.3% m/m
(preliminary -8.2%) vs. Oct +8.4% m/m, posting the first drop in three
months.

The capacity utilization index: Nov +1.6% m/m at a seasonally
adjusted 86.7 (vs. 100 = 2005 average) vs. Oct -2.3%.

tokyo@marketnews.com
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