TOKYO- Japan’s factory output rose for a second straight month in October, government data showed on Thursday, lifted by the production of integrated circuits and autos, although external demand risks loomed.
Industrial production rose 1.0 percent in October from the previous month, data from the Ministry of Economy, Trade and Industry (METI) showed. The reading was roughly in line with a median market forecast for 0.8 percent growth and followed 0.5 percent gains in September.
Electronic parts and devices production climbed 6.6 percent in October from the previous month, lifted by metal-oxide-semiconductor integrated circuits and hybrid integrated circuits.
Motor vehicle output also jumped 2.0 percent month-on-month in October, thanks to strong sales of small passengers cars and trucks.
The production of ordinary passenger cars, though, decreased 4.0 percent , weighed partly by disruptions at top automaker Toyota Motor a METI official said.
Toyota suspended work at several group factories for parts of last month due to an accident at a supplier’s facility. However, the carmaker reported a 39.2 percent rise in domestic production, crediting the increase to easing chip shortages.
Manufacturers surveyed by the industry ministry expect seasonally adjusted output to decrease 0.3 percent in November and climb 3.2 percent in December, sticking to its assessment on industrial outlook of “see-sawing”.
“While it’s positive that the impact of parts supply shortages is easing, production is likely to continue to see-saw as overseas economic conditions get severe,” said Masato Koike, economist at Sompo Institute Plus.
The impact of global interest rate rises on capital investment is affecting construction machinery in Europe, the METI official said.
