Japan’s Factory Output Rises For Third Consecutive Month

Factory output in Japan registered an increase for the third consecutive month during August, in a sign indicating economic recovery

Arslan Butt•Wednesday, September 30, 2020•1 min read

Japan's Factory Output Rises For Third Consecutive Month

Factory output in Japan registered an increase for the third consecutive month during August, in a sign indicating economic recovery following the coronavirus pandemic and ensuing shutdown. Industrial production was up by 1.7% MoM for the month of August as production of automobile and car parts climbed higher.

While the pace of growth has slowed down considerably since the previous month when factor activity had increased by 8.7%, it did come in slightly better than economists’ forecast, which was for a 1.5% rise. Japan’s export reliant economy has seen demand recovering, especially by China – its largest trade partner, supporting the improvement in manufacturing activity.

In addition, manufacturers’ outlook has also picked up. According to the Ministry of Economy, Trade and Industry (METI), manufacturers expect output to increase by 5.7% during September and post a 2.9% gain in October as well.

However, domestic demand in Japan continues to remain weak, with retail sales declining for the sixth consecutive month. Retail sales were down by 1.9% YoY during August, better than the 2.8% fall seen in the previous month and the 3.5% fall forecast by economists.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.