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Japan Industrial Production Rises 2.2% in January

METI signals near-term softness with projected declines for February and March.

Overview

  • The seasonally adjusted index reached 104.0 on a 2020=100 basis, marking the first monthly gain in three months.
  • METI kept its baseline assessment at "one step forward, one step back," indicating no clear recovery trend.
  • Thirteen of 15 industries expanded, led by automobiles and plastic products, while production machinery and pulp and paper contracted.
  • METI's short-term outlook anticipates a 0.5% drop in February followed by a 2.6% decline in March.
  • Regional data showed the Tohoku index fell 1.7% in December to 105.6 for a second straight monthly decrease, with the local bureau noting signs of recovery.