In April this year,
Japan's industrial
production increased 0.2 percent from the previous month, showing an increase for the second consecutive month. Domestic industrial output showed an increase of 13.4 percent from April in the previous year, according to the preliminary Indices of Industrial
Production report published by
Japan's Ministry of Economy, Trade and Industry.
In April, the Japanese iron and steel
production index increased 5.5 percent year on year, while
Japan's seasonally adjusted iron and steel
production index decreased 1.7 percent in April compared to March. Meanwhile, in April Japanese producers' iron and steel shipments rose by 2.2 percent and iron and steel inventories were down by 2.4 percent, both compared to the previous month.
Meanwhile, economists said that
Japan's industrial
production rose less than forecast in the month in question, stating that
China's slowing economy and
Europe's debt crisis will weigh on
Japan's fragile recovery.
China, the world's second-largest economy and
Japan's biggest trading partner, is on course this year to show a slower growth rate, according to the economists' estimates. The European debt crisis and concerns that
Greece may exit the euro are increasing demand for the yen as a haven, pushing the currency back toward the record high of 75.35 against the dollar reached last October. A stronger local currency erodes the value of overseas earnings and Japanese companies' global competitiveness.
According to the ministry's Survey of
Production Forecast in
Manufacturing, Japanese industrial
production is expected to decrease 3.2 percent in May and to increase 2.4 percent in June, both month on month. On the other hand, economists said the risks from
Europe's debt crisis and a rising yen give reason to be cautious about the pace of
Japan's recovery.