Japan's industrial output hit record high in August

Sep 28, 2007, 15:54 GMT

Tokyo - Japan's industrial output marked a record high in August in seasonally adjusted terms, while unemployment rose for the first time in 11 months to 3.8 per cent, the government said Friday.

The industrial output figure rose 3.4 per cent in August from a month earlier due to the increase in automobile output after a forced halt in production due to the July earthquake in northern Japan.

The index of output at mines and factories stood at 111.8 against 100 for the base year of 2000, the Ministry of Economy, Trade and Industry said in a preliminary report.

The ministry revised upward its assessment that Japan's industrial production trend is rising moderately.

The ministry expected production by manufacturers to fall 0.8 per cent in September but to rise 4.1 per cent in October.

Meanwhile, the jobless rate rose for the first time in 11 months to 3.8 per cent in August in seasonally adjusted terms, up 0.2 per cent from a month earlier.

Although the figure came out higher than the average market expectation of 3.6 per cent, the assessment was left unchanged by the Internal Affairs and Communications Ministry.

Some 2.49 million people were unemployed in August, down 230,000 from a year before.

For every 100 job seekers, there were 106 jobs available in August, according to a labour ministry report.

Meanwhile, Japan's average monthly household spending rose 1.6 per cent in real terms in August from a year before, the internal affairs ministry said.

The August figure came to 296,035 yen (2,562 dollars) due mainly to an 11.3-per-cent growth in cultural and entertainment spending.

Wage-earning household income fell 1.5 per cent in August to 467,786 yen.

Household spending data is a key indicator of personal spending, which accounts for about 55 per cent of Japan's gross domestic product.

The government reports also said Japan's consumer price index (CPI) fell 0.1 per cent in August from a year earlier.

The core nationwide CPI, excluding fresh food, stood at 100.2 compared to 100 in 2005.

The figure including perishables slipped 0.2 per cent from a year earlier to 100.6 in August.