AsianFin -- Japan's industrial production saw its fastest growth in nearly a year as manufacturers ramped up output to meet strong demand before the US enforces new tariffs on autos and auto parts.
Factory output rose by 2.5% in February compared to January, marking the first increase in four months and the largest gain since March of the previous year, according to the Ministry of Industry on Monday. This surpassed economists' expectations of a 2.0% rise. However, output was up just 0.3% from a year earlier, falling short of the consensus forecast for a 1.2% increase.
The ministry also reported a 0.5% increase in retail sales in February compared to January, slightly above expectations. Year-on-year, retail sales climbed by 1.4%.
These figures align with the Bank of Japan’s assessment that the economy has experienced moderate recovery, despite some areas of weakness. Authorities will closely monitor whether the rebound in industrial production can be sustained amid the looming threat of rising US tariffs. Last week, US President Donald Trump signed an order imposing a 25% tariff on foreign-made vehicles, effective April 3, with additional tariffs on auto parts set for May.
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