Japan’s industrial output recovers further in May

| June 29, 2011
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Japan’s industrial output recovered further last month after a record drop in March due to the earthquake and tsunami.

Disruptions caused by the twin disasters resulted in carmakers being forced to halt production as a result of parts shortages.

However, it looks as if the situation is improving for manufacturers after output rose at a better-than-expected rate in May.

Industrial output surged by 5.7% in May on a monthly basis – the biggest gain since 1953, according to the Trade Ministry – and better than forecasts of a 5.5% rise.

The figures suggest the industry is recovering from the quake and tsunami as carmakers restart production lines.

Yesterday, Toyota reported that its domestic production in May dived by 54.4% on an annual basis, however, this was far less than April’s 74.5% fall.

Meanwhile, Honda said output was 53.4% lower in May compared with 81% in April.

Nissan said production increased by 0.8% in May, compared with a 48.7% decline in April.

In other news, it was revealed yesterday that Japanese retail sales fell last month, by 1.3% on an annual basis, albeit the fall was less than the 2.6% expected.

Again, these figures suggest the world’s third largest economy is slowing recovering from March’s catastrophes as the rate of decline starts to ease.

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