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Asian Economic News

Japan Industrial Production Climbs 1.9% In June

By RTTNews Staff Writer   ✉   | Published:   | Follow Us On Google News
rttnewslogo20mar2024

Industrial output in Japan jumped 1.9 percent on month in June, the Ministry of Economy, Trade and Industry said on Friday.

That beat forecasts for a gain of 0.5 percent following the 2.6 percent decline in May.

On a yearly basis, output slipped 1.9 percent - also exceeding forecasts for -2.9 percent after easing 0.4 percent in the previous month.

Industries that mainly contributed to the monthly increase included chemicals, transport equipment and fabricated metals.

Upon the release of the data, the METI upgraded its assessment of industrial production, saying that it continues to fluctuate indecisively but shows signs of increasing in parts.

Shipments were up 1.2 percent on month in June and down 2.2 percent on year.

Industries that contributed to the monthly increase included electronic parts and devices; business oriented machinery; and fabricated metals.

Inventories were flat on month and on year. Industries that moved higher included iron and steel; transport equipment; and electrical machinery. Industries that moved lower included business oriented machinery; chemicals; and non-ferrous metals.

In the METI's survey of production forecast, output is expected to rise 2.4 percent in July and 2.3 percent in August.

Industries that contributed to the increase in July included chemicals; business oriented machinery; and transport equipment.

Industries that contributed to the increase in August were business oriented machinery; electronic parts and devices; and information and communication electronics equipment.

Also on Friday:

• Retail sales in Japan were down 1.4 percent on year in June, the Ministry of Economy, Trade and Industry said - missing forecasts for a decline of 1.2 percent following the 2.1 percent drop in May.

Sales from large retailers dropped 1.5 percent on year, also shy of expectations for a fall of 0.8 percent after sliding 2.2 percent in the previous month.

On a monthly basis, retail sales added 0.2 percent - missing forecasts for 0.3 percent after easing 0.1 percent a month earlier.

• The unemployment rate in Japan fell to 3.1 percent in June, the Ministry of Internal Affairs and Communications said - beneath expectations for 3.2 percent, which would have been unchanged from the May reading.

The job-to-applicant ratio was 1.37, matching forecasts and up from 1.36 percent in the previous month. The participation rate was 60.5 percent in June.

• The average of household spending in Japan was down 2.2 percent on year in June, the Ministry of Internal Affairs and Communications said - coming in at 261,452 yen.

That was well shy of forecasts for a drop of 0.4 percent following the 1.1 percent decline in May. Spending was down 1.1 percent on month.

The average of monthly income per household stood at 731,099 yen, up 0.2 percent on year, while the average of consumption expenditures per household was 276,602 yen, down an annual 5.1 percent.

• Overall nationwide consumer prices in Japan were down 0.4 percent on year, the Ministry of Internal Affairs and Communications - unchanged and in line with expectations.

Core inflation sank 0.5 percent on year versus expectations for -0.4 percent, which would have been unchanged.

On a monthly basis, overall inflation fell 0.2 percent and core CPI eased 0.1 percent.

Overall inflation in the Tokyo region, considered a leading indicator for the nationwide trend, was down 0.4 percent on year in July versus forecasts for -0.5 percent, which would have been unchanged.

Core inflation in Tokyo was down 0.4 percent, matching forecasts and up from -0.5 percent in June.

On a monthly basis, overall inflation fell 0.2 percent and core CPI eased 0.1 percent.

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