Japan Industrial Output Rises 0.3 Percent in March

Japan’s industrial production index in March rose 0.3 percent from the previous month, backed by automakers trying to recoup their fall in output following record heavy snowfall in February, government data showed Wednesday.

The seasonally adjusted index of output at factories and mines stood at 101.8 against the base of 100 for 2010. The Economy, Trade and Industry Ministry maintained its basic assessment of production, saying it “continues to show upward movement.”

Looking ahead, manufacturers polled by the ministry expect output to drop 1.4 percent in April and edge up 0.1 percent in May.

Yayoi Sakanaka, an economist at the Mizuho Research Institute, said she expects output to gradually return to an increasing trend in May or later, overcoming a fall in demand caused by the 3-percentage-point consumption tax hike to 8 percent from April 1.

“Even if the index falls 1.4 percent in April as projected, its level will still be higher than that marked in December. We also think the adverse impact of the consumption tax hike will disappear by around the summer,” she said.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza