Japan Industrial Production Sinks 1.1% In January

(RTTNews) - Industrial output in Japan dropped a seasonally adjusted 1.1 percent on month in January, the Ministry of Economy, Trade and Industry said on Friday.

That was shy of expectations for a decline of 1.0 percent following the 0.2 percent loss in December.

On a yearly basis, industrial production was up 2.6 percent.

Upon the release of the data, the METI maintained its assessment of industrial production, saying that it continues to fluctuate indecisively.

Industries that contributed to the decline included production machinery, electronic parts and electrical machinery. These were offset by gains among motor vehicles, chemicals and iron and steel.

Shipments were down 1.5 percent on month and up 2.0 percent on year, while inventories rose 0.9 percent on month and 0.5 percent on year and the inventory ratio was up 0.3 percent on month and 1.1 percent on year.

According to the METI's forecast of industrial production, output is expected to jump 5.0 percent in February and decline 2.0 percent in March.

Also on Friday:

• The METI also said that the value of retail sales in Japan was up a seasonally adjusted 0.5 percent on month in January, coming in at 13.623 billion yen. That was in line with expectations following the 0.8 percent decline in December.

On a yearly basis, sales were up 3.9 percent - again matching forecasts and up from 3.5 percent in the previous month.

Large scale retail sales were up 0.5 percent on month and 4.0 percent on year after slipping 0.8 percent on month and rising 3.0 percent on year in December.

Commercial sales were up 0.8 percent on month and 6.3 percent on year at 48.671 billion yen, while wholesale sales climbed1.1 percent on month and 7.2 percent on year to 35.048 billion yen.

• Overall inflation in the Tokyo region was up 2.9 percent on year in February, the Ministry of Internal Affairs and Communications said - easing from 3.4 percent in January.

Tokyo's core CPI was up an annual 2.2 percent, moderating from 2.5 percent in the previous month.