In October, Japan's index of industrial production witnessed a year-on-year rise of 1.4%, with a seasonally adjusted increase of 2.8% from September, as reported by the Ministry of Economy, Trade and Industry. Additionally, industrial shipments in Japan experienced a year-on-year growth of 0.4% in October and a seasonally adjusted gain of 2.6% compared to September.
Notably, the nation's industrial inventories dropped by 1.3% year-on-year and remained flat when compared to the previous month. Production capacity in Japan saw a slight rise of 0.1% month-on-month in October, although it experienced a decline of 1.2% on a yearly basis. A positive highlight was Japan's production of machinery, which surged by 16.7% year-on-year in October.
In contrast, the output of motor vehicles decreased by 0.7% over the same period. Overall, Japan's moderate growth in industrial output is somewhat aligned with the latest purchasing manager index (PMI) reports pertaining to the country's manufacturing sector. The headline Japan manufacturing PMI fell to 49.0 in November, down from 49.2 in October, indicating further distance from the 50-mark, which separates growth from contraction, as noted by S&P Global earlier this month.
"There was a sustained contraction in new order volumes, which contributed to the steepest reduction in production levels since April," reported S&P Global..