Japan Industrial Output Rises 1.4% in October

Japan's industrial output rose 1.4% in October from the previous month, surpassing market expectations of a decline. The growth was primarily driven by a 6.6% increase in motor vehicle production, which followed a mid-September reduction in U.S. tariff rates on Japanese cars from 27.5% to 15%. Nine of 15 surveyed industries recorded growth, including electrical machinery and communication electronics, though sectors such as electronic parts and devices declined.

The Ministry of Economy, Trade and Industry noted that the October growth was lower than the 2.6% increase recorded in September. Despite the rise, the ministry maintains that industrial production fluctuates indecisively. It forecasts that output will fall by 1.2% in November and 2.0% in December due to domestic inflation and concerns over fluctuating U.S. tariff policies.

Other economic indicators showed strength, with retail sales rising 1.7% year-on-year, exceeding the expected 0.8% increase. Additionally, official data indicates that core inflation in Tokyo has remained stable at a level above the target.