TOKYO: Industrial production in Japan posted record growth in July as moves to restart economic activities spread both at home and abroad after a hiatus caused by the fallout of the novel coronavirus pandemic, preliminary government data showed Monday.

The month’s seasonally adjusted production index for the manufacturing and mining sectors stood at 86.6, against 100 for the base year of 2015, rising 8.0 percent from June and up for the second consecutive month, according to the industry ministry data.

The rate of growth was the biggest since comparable data became available in January 2013. But the level of the index was the fourth lowest on record, suggesting that the environment surrounding the manufacturing sector remains severe.

Industrial production is showing moves of picking up, the ministry said, keeping its assessment unchanged.

Production at manufacturers is expected to continue increasing in August and September, though at relatively moderate paces of 4.0 percent and 1.9 percent, respectively, the ministry said.

“It will likely take more time for production to rise back to the levels before March,” around when the spread of the coronavirus began to accelerate, a ministry official said.

In July, production increased at 12 of the 15 sectors covered by the data.

Production at the automobile sector surged 38.5 percent, after a 28.6 percent leap in June, on the back of a recovery in demand at home and from the United States.

Meanwhile, output of transport equipment excluding automobiles fell 5.1 percent after rebounding 10.5 percent in June.

The shipment index in July gained 6.0 percent to 85.3, up for the second straight month, with 12 of the 15 sectors posting increases. The inventory index dropped 1.6 percent to 99.2, down for four months in a row.

JIJI Press