Manufacturing unit manufacturing in Japan in November rose for the sixth month, the outlook dims: Reuters ballot
© Reuters. FILE PHOTO: Worker rides a bicycle at a factory in the Keihin Industrial Area of Kawasaki
From Tetsushi Kajimoto
TOKYO (Reuters) – Japan’s industrial production is likely to have grown for the sixth consecutive year in November, indicating a gradual recovery in factory activity, although a recent resurgence of COVID-19 infections is clouding prospects, according to a Reuters poll on Friday revealed.
Commerce Department data, due at 8:50 a.m. (Sunday 2350 GMT) on Monday, likely shows that factory production rose 1.2% in November from the previous month after rising 3.9% in October was, according to a Reuters poll of 17 economists.
Japan’s factory production recovered from a pandemic-induced downturn earlier this year, which was supported by global demand for automobiles and IT-related goods and capital goods. However, some analysts said the outlook was uncertain.
Takeshi Minami, chief economist at the Norinchukin Research Institute, said new viral infections in Europe and America have stalled economic activity there.
US auto sales are slowing and the recovery of the Chinese economy on its pre-pandemic growth path has taken its course, which will limit Japanese factory production, he said.
“As such, Japan’s factory activity will fluctuate in December and January,” he added.
The world’s third largest economy has recovered from the deep slump in the second quarter caused by COVID, which was triggered by rising exports and a revival in private consumption.
However, analysts fear that a recurrence of coronavirus infections in Japan and elsewhere could keep recovery modest.
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