TOKYO: Japan’s industrial production in June grew 2.7 percent from the previous month, up for the first time in five months, thanks to the gradual resumption of economic activity amid the coronavirus pandemic, the Ministry of Economy, Trade and Industry said July 31. 

The seasonally adjusted production index for the manufacturing and mining sectors stood at 80.8 against 100 for the base year of 2015.

But the index was at the second-lowest level since comparable data became available in January 2013. The worst reading of 78.7 was marked in May this year.

The ministry revised up its assessment on industrial production, saying it “has bottomed out and shows picking up movement.”

In May, the ministry said that industrial output was “declining rapidly.”

Industrial output is expected to grow further in July, according to the ministry.

A ministry official stressed the need to pay attention to industrial production in August and later, following the recent surge in the number of newly confirmed coronavirus cases.

Production increased in 10 of all 15 sectors covered by the data.

Production of automobiles jumped 28.9 percent in June on the back of a recovery in demand and parts procurement from overseas. Output also grew for production machinery and plastic products.

The industrial shipment index stood at 80.8, up 5.2 percent, with 12 sectors seeing growth. The inventory index came to 100.8, down 2.4 percent.
 

In April-June, the industrial production index plunged 16.7 percent from the previous quarter.

The pace of drop is likely to be fastest since January-March in 2009, when the Japanese economy was hit by the global financial crisis triggered by the collapse of U.S. investment bank Lehman Brothers in September 2008. But direct comparison between the two periods is not workable due to different standards.

JIJI Press