Japan Industrial Output In July Up 2.8% On Chip Equipment Rise

Japan's industrial output in July grew by 2.8% from the previous month as the production of semiconductor equipment and electrical devices was boosted by overseas and data center demand, government data showed, Kyodo News reported.

The seasonally adjusted index of production at factories and mines was 102.8 against the 2020 base of 100.

The seasonally adjusted index of production at factories and mines was 102.8 against the 2020 base of 100, according to a preliminary report from the Ministry of Economy, Trade and Industry.

This followed a downwardly revised 4.2 percent decrease in June. The ministry upgraded its basic assessment of production for the first time in 16 months, stating that it was "fluctuating indecisively."

In its evaluations from January through June, the ministry had maintained the same assessment while adding that output also "showed weakness." A ministry official cited progress in inventory adjustments and positive outlooks from businesses.

However, he also warned, "While production has in effect recovered from recent weakness, meaning it is improving, an optimistic view cannot be taken."

Of the 15 industrial categories covered in the survey, 14 saw higher output while one logged a decline.

By sector, electronic parts and devices grew by 9.7% as semiconductor memory chips saw demand for use in data centers. Production machinery rose by 7%, driven by semiconductor equipment sales abroad, including in China and Taiwan, the ministry said.

Petroleum and coal products were the sole decliners, down 7.6%, Mainichi Japan also reported.