Key facts
- Japan's factory output rose 1.3% in June, exceeding the 0.7% forecast.
- Industrial production increased 1.7% month-on-month according to the industry ministry.
- Output grew 4% year-on-year, surpassing the expected 1.3% gain.
- Manufacturers forecast a 1.2% rise in July and a 4.5% increase in August.
- Gains were driven by transport equipment (excluding cars) and electronic parts and devices.
Japan's factory output saw a stronger-than-expected increase of 1.3% in June, according to government data. This rise surpassed the median market forecast of 0.7% and indicates resilience among manufacturers despite external pressures. The Ministry of Economy, Trade and Industry reported that industrial production gained 1.7% from the previous month, with a 4% increase year-on-year, also exceeding expectations.
The gains were primarily driven by a significant 14.8% increase in the output of transport equipment, excluding cars, and a rise in electronic parts and devices. However, output for steel and non-ferrous metals saw a decline of 0.5%.
Looking ahead, manufacturers surveyed by the ministry anticipate continued growth, projecting a 1.2% increase in output for July and a substantial 4.5% rise for August.