Japan’s industrial production increased less than expected in January, in a slowdown likely to be temporary caused by declining output of mobile phones and flat screen televisions.
Factory output climbed 2.4 percent from December, when it rose 3.3 percent, the Trade Ministry said in Tokyo today. The median estimate of 29 economists surveyed by Bloomberg News was for a 4 percent gain.
Companies plan to increase output 0.1 percent this month and 1.9 percent in March, according to a survey in today’s report, setting the stage for the first advance in production in three quarters. Growing demand in emerging Asia is prompting Japanese companies such as Sony Corp. and Canon Inc. to forecast higher sales and consider expanding output capacity.
“The January figure came in a lot weaker than expected, but we don’t need to be too worried as the outlook figures point to an expansionary trend,” said Takuji Okubo, chief Japan economist at Societe Generale SA in Tokyo. “Production will likely be relatively robust in the first half of the year.”
The yen traded at 81.69 per dollar at 10:37 a.m. in Tokyo and the Nikkei 225 Stock Average fell 0.7 percent amid concern about unrest in the Middle East. The yield on the benchmark 10- year bond fell to 1.23 percent.
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