The Magazine for Asian Investors
Japan’s Ministry of Economy, Trade and Industry (METI) reported that industrial production rose 1% in July from June. It rose for the second month in a row as parts shortages eased after Chinese authorities eased strict measures to curb the spread of COVID-19.
Looking at the individual sectors of the economy, it can be seen that the automotive industry recorded the largest production increase of 12% in June, led by passenger cars and small cars.
The parts shortage began to ease after China lifted its containment measures on the COVID-19 spread in June.
The output of other industries, including non-industry-specific machinery and equipment, increased by 8.6% and that of manufacturing machinery by 5.9%.
Production of the industrial parts and electronic equipment manufacturing sector, including memory chips, decreased by 9.2%.
According to the survey, the ministry expects industrial production to increase by 5.5% in August and by another 0.8% in September.