Japanese industrial output in surprise rise

Japan has received some much-needed good news today after Government figures revealed a 1.6% rise in industrial output for March - the first such rise in six months.

The rise exceeds analysts estimates and many are suggesting that the country’s misfortunes may be taking a u-turn.

Today’s figure follows a 9.4% plunge in February and a record fall of 10.2% in January. The future is also looking promising after the Government is forecasting industrial production to rise 4.3% this month and up 6.1% in May.

The Japanese economy, which is the second largest in the world, was once seen as relatively unscathed by the global financial crisis but it has been hit by a slump in demand for its products overseas.

Japan’s unemployment rate has risen to a 3-year high of 4.4%, up from 4.1% in January, while business confidence among major manufacturers recently plummeted to a 35-year low.

The country has just announced a further stimulus package to boost struggling companies and support regional economies - it is the third such stimulus since last October, introduced to boost the Japanese economy and fight off a prolonged recession.

Today’s figures follows data released earlier this month showing that exports have also seen a marginal increase.

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