Japanese industrial production grew in June compared to the previous month
On an annual basis, industrial production declined by -17.7%, once again surpassing the forecast of a -20% decline after a -26.3% decline the previous month.
Industries that contributed to the monthly increase included automotive, industrial machinery, and plastics, compensating for the chemical, paper, and other industries' weaknesses.
Following the publication of the data, METI raised its industrial production estimate, saying it has bottomed out and shows signs of growth.
Shipments grew by 5.2% MoM and 16.3% YoY, while inventories declined by -2.4% MoM and -3.4% YoY. The inventory ratio declined by -7.0% for the month but rose by 22.7% for the year.
According to the METI forecast, production is expected to increase by 11.3% MoM in July and by 3.4% in August.
The Ministry of Internal Affairs and Communications also reported that Japan's unemployment rate was 2.8% in June, taking into account seasonal fluctuations. This exceeded the unemployment forecasts by 3.1% but was lower than the previous 2.9%.
Job to Applicant ratio fell to 1.11, missing expectations of 1.16 and dropped from 1.2 the previous month.
Employment in June was 66.70 million, 770,000 fewer than the previous year. The number of unemployed in June was 1.95 million, 330,000 more than in the last year.