Japanese industrial production rose the most since January in a sign that companies are recovering from the blow of a higher sales tax.
Output (JNIPMOM) increased 2.7 percent in September from the previous month, the trade ministry said, beating the 2.2 percent median estimate of economists. That trimmed the decline for the third quarter to 1.9 percent, following a drop of 3.8 percent in the three months through June.
Prime Minister Shinzo Abe must decide whether the economy can bear another hike in the levy next year after an increase in April caused the sharpest economic contraction in five years. Bank of Japan Governor Haruhiko Kuroda has said it would be hard to deal with risks should confidence in the nation’s finances be shaken by a delay while a finance official in Abe’s ruling party warned the economy isn’t strong enough.
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