Japan's July commercial output jumps record 8% led by autos, parts
31 August, 2020
Japan's professional output in July jumped a record 8.0 percent from the prior month, as production of autos and their parts continued rebounding from a plunge triggered by the coronavirus pandemic, government data showed Monday.
The seasonally adjusted index of production at factories and mines stood at 86.6 against the 2015 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report.
The July output increase was the highest since January 2013 when the ministry started compiling data beneath the current method, and was the second straight rise carrying out a downwardly revised 1.9 percent upsurge in June.
Still, the result had not been strong enough to prompt the ministry to revise up its assessment, as the index level remains low compared to the pre-coronavirus reading of 95.8 in March.
"We expect output to moderately recover in the coming months. Nonetheless it will take additional time for a complete rebound to pre-coronavirus levels," a ministry official said.
For July, the ministry said professional output "shows picking-up movement." In June when it raised its view, the ministry said output "has bottomed out and shows picking-up movement."
The state said the assessment remains unchanged despite the fact that the description of the view was tweaked.
Production in the auto industry gained 38.5 percent in July from per month earlier, remaining the largest contributor as supply chain disruptions due to the pandemic were resolved and demand recovered.
A few sectors saw a production decline in the month such as for example makers of printers and aircraft parts.
The index of professional shipments climbed 6.0 percent to 85.3, while that of inventories fell 1.6 percent to 99.2.
Predicated on a poll of manufacturers, the ministry expects output to improve 4.0 percent in August and rise 1.9 percent in September.
"It has become clear that the index is picking up" after it fell around 20 percent between February and May as a result of pandemic, said Takuji Aida, chief Japan economist at Societe Generale Securities Japan Ltd.
"Looking ahead, the index will be supported by recovery in exports and upsurge in demand for consumption and capital expenditures," he said.
Source: japantoday.com
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