Japan’s industrial production increased by 2.8% month-over-month in October 2024, marking the second consecutive month of expansion. Although slightly below the preliminary estimate of 3.0%, this figure reflects a notable acceleration from the 1.6% rise recorded in September. It also represents the fastest pace of growth since July, signaling a rebound in industrial output.

Key Sectors Driving the Growth

The growth in October was driven by robust performances in key sectors. Production machinery experienced a dramatic turnaround, surging 21.6% compared to a 1.7% decline in September. Motor vehicles also contributed significantly with a 6.4% increase, following a 7.1% rise the previous month. Fabricated metals saw a strong rebound, growing by 7.8% after contracting by 0.2% in September. These sectors collectively played a critical role in the month’s industrial output expansion.

Annual Perspective: A Positive Shift

On a yearly basis, industrial production rose by 1.6% in October, swinging from a 2.6% decline in September. This marks the first year-over-year increase in three months, offering a positive outlook for Japan’s manufacturing sector. The rebound suggests that businesses are recovering from previous setbacks and adjusting to evolving market conditions.

Outlook for Japan’s Industrial Sector

The October data underscores a strengthening in Japan’s industrial output, albeit at a slightly slower pace than initially expected. The resurgence in production machinery, motor vehicles, and fabricated metals points to a recovering economy. As the industrial sector continues to stabilize, future growth will likely depend on global demand trends and domestic policy support.