Output from Japan’s industrial sector surged in November, the largest margin since 2013, giving hope that Japan’s automotive sector will eventually be able to overcome the struggle of semiconductor supply.
Last month’s industrial production increased by 7.2% compared to October, well above economists’ expectations. Analysts said other manufacturers seemed to be rebuilding exhausted inventories faster than expected, and said improvements were driven by a 43.1 percent revival of car production month-on-month.
Mr. Takuji Aida, Chief Economist of Okasan Securities, said that although overseas parts procurement is stagnant, Supply chain issues What was afflicting Japanese manufacturers was gradually resolved.
Monthly data released by the Ministry of Economy, Trade and Industry represent Japan’s last major economic announcement for the calendar year. The November rise followed a more modest 1.8% rise in October from the previous month.
The government also announced an upward revision of the overall assessment of industrial production, saying it was “showing signs of recovery” after the manufacturing sector had previously rated the situation as “stagnation.”
Goldman Sachs analysts expected a 4.8% rise, but said in January 2020 the production index had recovered to just below pre-pandemic levels.
Yuriko Tanaka, an economist at Goldman Sachs, said, “Monthly production is likely to fluctuate amid prolonged supply shortages such as semiconductors, but it seems to be steadily returning to a solid growth trajectory.” ..
Investors responded positively to the data, raising the benchmark Topix by about 1%, slightly above 2,000 points on Tuesday morning.
However, some interpret the numbers as a potential leading indicator of more sustainable profits in the final quarter of the fiscal year ending March 2022. Was more vigilant..
Takashi Miwa, Chief Japan Economist at Nomura Securities, said, “Some manufacturers have already announced downward revisions to production in December and January, so we need to be a little careful about what happens in the fourth quarter. “.
Miwa said in January Spread of Omicron variants.. “It can negatively impact production and tighten supply constraints on technologies, IT and other industries that rely on semiconductor supplies,” he said.
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Japan industrial output surge offers hope of end to supply chain squeeze Source link Japan industrial output surge offers hope of end to supply chain squeeze