Output in Japan grows

Japan’s economy has showed initial signs of a recovery as the production of electronic devices and cars boosted industrial output in October, according to preliminary trade ministry data. Industrial output climbed for the second month in a row while monthly retail sales also showed a modest uptick. The data, which was released on November 30, showed factory output rose during October by 1.4 per cent from September – underlining analysts’ expectations Japan’s economy is heading for a minor rebound in the October-December quarter. The country’s economy slid into a technical recession after its gross domestic product (GDP) shrank for a second straight quarter in September – its second in as many years. According to data released last week, household spending and consumer inflation also weakened, piling pressure on the Bank of Japan (BoJ) to ramp up its already massive stimulus. While the growth in industrial production indicated the country’s recession may be temporary, the trade ministry is cautious in its forecast for the rest of the year. Manufacturers it surveyed predict output to rise by 0.2 per cent in November and drop by 0.9 per cent in December. Retail sales are another bright spot – up 1.8 per cent in the year to October as sales of clothes, food and drink, cars and home appliances drove growth.