Japan’s Industrial Output Down 1.2 Pct in Aug.

Tokyo, Sept. 30 (Jiji Press)–Japan’s industrial production in August fell 1.2 pct from July, down for the second straight month, the industry ministry said in a preliminary report Tuesday. The seasonally adjusted production index for the manufacturing and mining sectors came to 100.9 against the 2020 base of 100. The decline partly reflected a drop in orders for laptop computers. The ministry kept its assessment unchanged, saying that industrial production is moving up and down. Production declined at 12 of the 15 surveyed sectors, including the electric machinery and information and communication electronics equipment sector and the metal products sector. For laptops, replacement demand related to the termination of Microsoft Corp.’s support service for its Windows 10 operating system remained robust. Meanwhile, demand for computers allocated to elementary and junior high school students across Japan under the government’s GIGA School initiative, which is aimed at digitalizing education, has run its course, according to the ministry. On the other hand, production increased 20.0 pct at the transport machinery sector on the back of strong demand. The automobile sector saw a 2.5 pct rise thanks to increased production of passenger cars for overseas markets. Production at manufacturers is forecast to rise 4.1 pct in September and 1.2 pct in October. However, a ministry official indicated that companies appear cautious over production plans, due in part to the U.S. government’s tariff policy. The August shipment index rose 0.5 pct, while the inventory index fell 1.0 pct. END [Copyright The Jiji Press, Ltd.]