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Japan’s industrial output in November surges record 7.2%

Japan’s industrial output in November surges record 7.2%

Japan’s industrial output in November surges record 7.2%

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TOKYO: Japan’s industrial production surged a record 7.2 per cent in November compared to the previous month, with auto output rebounding from a decline triggered by a global semiconductor shortage and supply chain disruptions, government data revealed on Tuesday.

The seasonally adjusted production index for factories and mines stood at 97.7 against the 2015 base of 100, rising for the second consecutive month and marking the sharpest month-to-month gain since February 2013 when comparable data became available, according to a preliminary report by the Ministry of Economy, Trade and Industry.

The latest figure came after an upwardly revised growth of 1.8 per cent was registered in October.

By component, the car industry’s output saw the biggest advance of 43.1 per cent from October, up for the second straight month and contributing the most to the overall growth.

Auto production had been hit hard by a worldwide chip shortage and a disruption in the supply of parts from Southeast Asian nations until September, due to restrictions on economic activities caused by the spread of Covid-19.

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“The impact of the part supply shortages began to ease in October, and was mitigated further in November,” a ministry official told reporters.

Output of plastic products also jumped 9.5 per cent, prompted by increasing demand for those used for automobiles.

The ministry upgraded its basic assessment from a month earlier, the first time since August last year, saying that the industrial production “shows picking-up movement,” compared to the previous month’s view that said it “is pausing.”

Looking ahead, the ministry expects that the production will continue to expand, with a 1.6 per cent rise in December and a 5 per cent growth in January, based on a poll of manufacturers.

Meanwhile, the official also warned of “downside risks” for the December forecast, citing that some domestic automakers are planning to adjust their production for the month mainly due to supply issues in Southeast Asia.

In the reporting month, the index of industrial shipments increased 7.4 per cent to 95.3, while that of inventories was up 1.7 per cent at 100.4.

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