Business

Japan industrial output rises 0.3 percent in July

The Associated Press, Tokyo | Tue, 08/31/2010 8:56 AM
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Japan's industrial production in July unexpectedly rose for the first time in two months, as companies bolstered output despite signs of a slowing global economy.

Factory production climbed 0.3 percent from June, according to the Ministry of Economy, Trade and Industry's monthly report. The reading beat Kyodo news agency's average market forecast for a 0.3percent decline.

Sectors contributing to the improvement include general machinery, chemicals and paper.

"Industrial production continues to show an upward movement although it has been pausing temporarily in part," the ministry said in a cautious assessment.

Surveyed companies expect output to rise 1.6 percent in August and 0.2 percent in September. Shipments fell 0.1 percent, while inventory retreated 0.5 percent.

Japan faces an increasingly uncertain future amid a strong yen and slowing growth in key markets like China and the U.S. The economy barely grew in the second quarter, and policymaker are now scrambling to protect a faltering recovery.

The central bank eased monetary policy Monday, and the government unveiled a new 920 billion yen ($10.9 billion) stimulus package that it hopes to approve next month.

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