Japanese industrial production rose in November backed by strong demand from China

02 January 2018

Recent data from Japan’s Ministry of Economy, Trade and Industry depicted that the seasonally adjusted industrial production index for the month of November moved up 0.6% from the previous month to 103.6.

Japanese manufacturing sector has seen upsides backed by the strong demand from China for products such as robots and smartphone components. Exports of industrial robots to China swelled as companies there invest in labour saving solutions to combat rising labour costs.

General purpose, production and business oriented machinery, a category that covers excavators and robots led all other industries in lifting the production index. Output in that category jumped by 3.1% over the month in November.

China’s environmental regulations are also providing a tailwind for Japanese-made factory robots. Annual production of industrial robots by value is set to top 800 billion yen ($7.08 billion) for the first time this year, according to the Japan Robot Association.

The semiconductor sector is also brisk thanks in large part to the Chinese market. November exports to China hit a monthly record, data from the Ministry of Finance shows, with chip-making equipment providing a major boost.