Japan's industrial output increases for fifth month

Japan’s industrial output increases for fifth month

Japan's industrial production rose for a fifth month in December as overseas and domestic demand encouraged companies to increase output of electronics and motor vehicles. Japan's Ministry of Economy, Trade and Industry (METI) disclosed that the country's industrial production rose 1.4 percent in December, just under a revised 1.5 percent in November and below the market expectations of 1.8 percent. Economists expected industrial production to be curtailed by a diminishing appetite for cars in the US, although it was not expected to affect Japan's overall economic recovery. Compared to previous year, industrial production rose 3.8 percent in December. Shipments rose 1.1 percent month on moth last month while inventories also grew 0.3 percent. Industrial production increased 1.3 percent year on year in 2005. METI expects industrial output to increase 0.9 percent month on month in January but then fall 1.4 percent in February. Analysts indicated that the improvement in household income will probably be more moderate than before and they expect industrial production to grow more modestly. They also said that the slowing in US economy, which grew at-a-slower than-expected 1.1 percent, could hit Japanese automakers.