Japan's industrial output rises unexpectedly

Japan’s industrial output rises unexpectedly

Japan's industrial output rose 2.1% in January 2005 after a fall of 0.8% in December 2004, the Japan's Trade Ministry said. The increase in industrial output bolsters hopes that the economy, which was in recession for most of 2004, could get back on track soon. The chemical, transportation and electronic communications equipment sectors contributed to the January advance, while the general machinery sector capped the gain. Shipments rose 1.8% month-on-month in January, while inventories were up 0.2% from December. The Trade Ministry indicated that industrial output would fall 0.5% in February and drop 1% in March. The slowdown in the electronics and metal products sectors will affect the February numbers. General machinery, steel and electronics machinery will likely contribute to March's anticipated decline.