An employee works on the automobile assembly line at the Kawasaki plant of Mitsubishi Fuso Truck and Bus Corp, owned by Germany-based Daimler A. Photo: REUTERS file
business

Japan's factory output rebounds; jobless rate falls

18 Comments
By DANIEL LEUSSINK

Japan's industrial output snapped four months of decline in June, pointing to a modest recovery in broader business and consumer activity in the world's third-largest economy following a heavy hit to demand from the coronavirus pandemic, according to data released on Friday.

Separate data showed the June jobless rate edged down from a three-year high hit the previous month, although the number of available jobs per applicant fell to a more than five-year low.

Official data showed factory output increased 2.7% in June from the previous month when it hit its lowest level since March 2009 during the financial crisis.

The sharp rise, which followed four months of declines, was largely thanks to a bounce in motor vehicle production. It beat the median market forecast of a 1.2% rise in a Reuters poll of economists.

Manufacturers surveyed by the Ministry of Economy, Trade and Industry (METI) expect output to jump 11.3% in July and 3.4% in August, the data showed.

"We think manufacturing output will rise by around 9% in the third quarter," said Tom Learmouth, Japan economist at Capital Economics. "However, we expect it to remain below the level it was at before last year's sales tax hike until 2022."

The government raised its assessment of industrial production to say it had stopped falling and was now picking up.

Analysts expect the economy to have shrank by more than 20% on an annualized basis in the second quarter as the coronavirus pandemic and lockdown measures seen around the world delivered a blow to business and consumer demand.

Preliminary April-June GDP data will be released on Aug 17, two weeks after the government next Monday announces a revision of first-quarter GDP data to take into account a large downgrade of business spending for the quarter.

Japan's seasonally adjusted jobless rate fell to 2.8% in June, separate government data showed, easing from a three-year high hit the previous month and beating the median estimate of 3.1%.

The jobs-to-applicants ratio dropped to 1.11 in June from 1.20 in May, marking the lowest reading since October 2014, labor ministry data showed. It means fewer than six jobs were available per five job-seekers.

© Thomson Reuters 2020.

©2020 GPlusMedia Inc.

18 Comments
Login to comment

Japan's seasonally adjusted jobless rate fell to 2.8% in June, separate government data showed, easing from a three-year high hit the previous month and beating the median estimate of 3.1%.

Yeah yeah yeah....

4 ( +7 / -3 )

In factories, they do not deal with people. Affected seriously are the businesses which have to deal with people.

2 ( +2 / -0 )

Somebody tell that guy his chassis is upside down.

3 ( +6 / -3 )

Great news! Abenomics at it's best!

-8 ( +0 / -8 )

garypen, he's hanging from the ceiling ; )

3 ( +3 / -0 )

I agree with this article. So true. Sanitized. Amazing article. Love it. Go Japan! Yeah! Jobless rate and all.

4 ( +4 / -0 )

To be expected. Just gotta push on.

-2 ( +0 / -2 )

Japan's seasonally adjusted jobless rate fell to 2.8% The jobs-to-applicants ratio dropped to 1.11, which means for every 100 workers their 111 jobs. Not bad.

-3 ( +1 / -4 )

 The jobs-to-applicants ratio dropped to 1.11, which means for every 100 workers their 111 jobs. Not bad.

the reason there are so many jobs available is because many jobs cant be filled because either nobody wants to work them or the pay is too little. Japan economy shrank 20% last quarter yes manufacturing is up 11% . no the economy is far from getting back on track to levels prior to the tax hike last year. they dont mention all the big airlines corporations that demand bailouts and the 1000s of small businesses that went bankrupt

4 ( +4 / -0 )

Somebody tell that guy his chassis is upside down.

since everything hangs off the chassis , they assemble them that way at the factory. you every tried installing a rear axle on a truck using jacks!? far easier to install it with overhead cranes, everything is waist height and easy to install, less heavy lifting less back bending means faster production lines and less injuries

1 ( +1 / -0 )

I’m still jobless!

0 ( +2 / -2 )

Well done Japan, Koike an Abe are great parents! Abenomics FTW!!!

-1 ( +1 / -2 )

wtfjapan

since everything hangs off the chassis , they assemble them that way at the factory. 

It's that way on purpose??? I'm shocked...SHOCKED!

0 ( +0 / -0 )

The metrics used to establish these figures are more massaged than a Matsuzaka cow and are as reliable as the coronavirus data coming out of other agencies.

1 ( +1 / -0 )

Japan's seasonally adjusted jobless rate fell to 2.8% in June, separate government data showed, easing from a three-year high hit the previous month and beating the median estimate of 3.1%.

Good job, outstanding Japan model, gotta keep the numbers that negatively affect that perfect image low. Just like the covid-19 numbers, there shouldn't be a blemish on the good, we-are-special image.

0 ( +1 / -1 )

2.7% is a sharp rise?

Really?

0 ( +0 / -0 )

Picture must be a truck chassis...

1 ( +1 / -0 )

The metrics used to establish these figures are more massaged than a Matsuzaka cow ....

Especially when they undermine your world view.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites