Japan industrial output up 1 percent in November

Japan's industrial production rose in November for the first time in six months, easing worries that the country's recovery might veer off track.

The Ministry of Economy, Trade and Industry said Tuesday that factory output climbed 1 percent from the previous month due to stronger demand for transport equipment and electronic parts. Data last week showed that export growth in November accelerated for the first time in nine months.

The result was slightly better than Kyodo News agency's average market forecast for a 0.9 percent climb. The increase follows a 2 percent drop in October, when the Japanese auto sector took a major hit from the expiration of government subsidies for eco-car purchases.

The ministry's survey points to stronger growth ahead. It expects industrial production to rise 3.4 percent in December and 3.7 percent in January.

Separately, the government said prices in November fell for the 21st straight month as deflation kept its grip on the economy. The key consumer price index, which excludes volatile fresh food prices, fell 0.5 percent from a year earlier.

Japan's unemployment rate held steady at 5.1 percent, and household spending fell a real 0.4 percent from a year earlier, according to the Ministry of Internal Affairs and Communications.

Tokyo has been struggling to keep its fragile economic recovery alive, battling deflation and a strong yen, which can hurt exports. The current government is facing low approval ratings and has made job creation a priority, recently passing a $61 billion stimulus package with support for small businesses and regional economies.