Japan Industrial Production Slips 2.6% In October

Industrial output in Japan fell a seasonally adjusted 2.6 percent on month in October, the Ministry of Economy, Trade and Industry said on Wednesday.

That missed forecasts for a contraction of 1.5 percent following the 1.7 percent drop in September.

On a yearly basis, industrial production rose 3.7 percent - also shy of expectations for a gain of 5 percent and slowing from 9.6 percent in the previous month.

Upon the release of the data, the METI announced its assessment of industrial production, saying that it is picking up slowly but still shows signs of weakness in places.

Industries that contributed to the decline included production machinery, electronic parts and chemicals. These were offset by increases among motor vehicles, business-oriented machinery and electrical machinery.

Shipments were down 1.1 percent on month and up 4.8 percent on year thanks to declines among production machinery, motor vehicles and electronic parts.

Inventories fell 0.8 percent on month and rose 4.7 percent on year following declines among motor vehicles, electronic parts and iron and steel.

According to the METI's forecast of industrial production, output is expected to rise 3.3 percent on month in November and add 2.4 percent in December, thanks to increases among production machinery, business-oriented machinery, chemicals and transport equipment.

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