Japan’s industrial production surged in March, surpassing market expectations, as automakers resumed production following safety concerns. Data from Japan’s Ministry of Economy, Trade and Industry (METI) revealed a 3.8 percent increase in industrial production compared to the previous month, exceeding the median market forecast of 3.5 percent.
The resurgence in Japan’s industrial production was due to a notable 9.6 percent rise in motor vehicle production, with notable contributions from regular passenger cars and trucks.
Automaker Toyota Motor restarted production of certain models in early March after some irregularities in Toyota Industries’ diesel engines. Additionally, Daihatsu, Toyota’s small-car unit, gradually resumed vehicle production in February, further bolstering the automotive sector.
According to the ministry, the manufacturing of production machinery, which includes semiconductor production equipment, saw an 11.6 percent increase. Meanwhile, production of electronic parts and devices increased by 9.2 percent.
Manufacturers anticipate growth in Japan’s industrial production to continue, with forecasts suggesting a 4.1 percent increase in April and a 4.4 percent increase in May, according to ministry surveys.
However, concerns persist regarding potential disruptions, particularly at Toyota’s domestic plant, which could impact factory output in April due to quality checks for Prius cars.
Read: Hong Kong’s GDP likely to grow 2.5-3.5 percent in Q1 of 2024
Notably, data also reveals an expansion of 1.2 percent annually in Japan’s retail sales in March. Retail sales fell short compared to median market forecasts for a 2.2 percent increase. However, they marked their 25th consecutive month of expansion.
Compared to February 2024, retail sales saw a 1.2 percent decline in March after recording a 1.7 percent increase in February.
For more news on the economy, click here.
