Japan's industrial output declines

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Japan's industrial output dropped last month - with production, shipments and inventory figures all decreasing - but government forecasters expect manufacturing and production to rebound this month and next, officials say.

The unemployment rate adjusted for seasonal differences was unchanged in November from the previous month, at 4.5 per cent, the Government said.

Industrial output dropped a seasonally adjusted 2.6 per cent in November, according to the Ministry of Economics, Trade and Industry. It was the first decline in two months.

It said industries contributing most to the drop were transport equipment, information and communication electronics and iron and steel.

Commodities such as large and small passenger cars and mobile phones added to the decline.

The ministry described the data as flat and said manufacturing and production were expected to increase 4.8 per cent in December and to increase 3.4 per cent in January

In other economic data announced yesterday, the Government said the core Consumer Price Index fell 0.2 per cent in November from figures of a year earlier, its second consecutive monthly fall. The index, which does not include fresh foods, was 99.6 against the 2010 base of 100.

Core CPI for Tokyo in December - considered an indicator of future trends for the entire country - fell 0.3 per cent.

- AAP