Japan Industrial Production Drops 9.6%

123jump.com Staff
30 Jan, 2009
New York City

Japan industrial production index in December dropped 9.6%. The sharp decline in production was driven by falling demand in transport and industrial machinery orders and falling global exports. The total number of unemployed rose 17% in December. The Nikkei 225 index fell 3.1%.

[R]5:00AM New York, 7:00PM Tokyo - Japan''s industrial production drops 9.6% in December. Consumer prices fall 0.4% in December. Total number of unemployed persons advanced 16.9% in December.[/R]

The stocks in Tokyo fell on continued earnings downgrades and worries that the economic recession may be the worst since the World War II.

The downtrend was also exacerbated by government reports that showed industrial production fell heavily and the number of unemployment persons increased markedly in December.

In Tokyo trading Nikkei 225 index fell 3.1% or 257.19 to 7,994.05, rising 3.2% for the week but falling 9.8% for the month. The broader Topix Index fell 3% or 24.44 to 794.03.

In the first section of the Tokyo Stock Exchange 8.4 billion shares worth 565 billion yen were traded and in the second section 101 million shares valued at 999 million yen changed hands.

Of the Nikkei 225 index stocks, 28 rose, 192 declined, and 5 were unchanged. Konica Minolta Holdings led gainers in index shares with a rise of 11.3% followed by NGK Insulators increasing 4.5%.

Industrial Production Falls 9.6% in December

Japan''s Ministry of Economy, Trade and Industry reported that industrial production fell 9.6% in December from November and 20.6% from a year ago to 84.6 in December.

The production in transport equipment; electronic parts and devices; and general machinery declined. The survey estimates further decline of 4.7% in February.

The report notes that shipments index fell 8% from the previous month and 20.5% from a year ago to 86 in December dragged by a weakness in transport equipment; electronic parts and devices; and general machinery.

Inventory in the period rose 1% from a month earlier and 4.7% from a year ago in December impacted by electronic parts and devices; electrical machinery; and fabricated metals, correspondingly.

Consumer Prices Index Falls 0.4%

Japan''s statistics bureau reported today that the country''s consumer price index fell 0.4% from a month ago, but rose 0.4% from a year earlier in December.

Food prices gained 0.2% on the month and 3.6% from a year ago; housing was unchanged in the month and rose 0.1% from a year earlier, while fuel, light and water charges fell 1.7% on the month but rose 1.8% for the year.

Clothes and footwear dropped 0.4% from the previous month and rose 0.5% from a year ago and transport and communication fell 0.2% and 5% from the previous month and year respectively.

The consumer price index for Ku-area of Tokyo slipped 0.6% from the previous month and rose 0.5% over the previous year in January.

Unemployment Persons Increase 16.9%

Separately, the statistics bureau said the number of unemployed persons gained 16.9% to 2.7 million in December, while the number of employed persons fell 1% from the previous year to 63.31 million.

In addition, the bureau said the average amount of monthly consumption expenditures per household for two or more person household fell 4.6% in real terms was 336,976 yen in December.

The average amount of monthly income per household gained 2% in nominal terms and 1.6% in real terms to 969,449 yen from the previous year.

Consumption expenditures fell 3.7% in nominal terms and 4.1% to 365,435 yen from a year ago.

Gainers & Losers

Konica Minolta led gainers in the Nikkei 225 index shares with a rise of 11.3% followed by increases in NGK Insulators of 4.5%, in Nippon Paper Group of 4.1%, in Chubu Electric Power of 3.2%, and Kansai Electric Power of 3.1%.

Toshiba Corp. led decliners in the Nikkei 225 index shares with a fall of 17.4% followed by losses in Nippon Yusen of 15.9%, in Nippon Sheet Glass of 14.2%, in Kawasaki Kisen of 13.02%, and Mitsui OSK Lines of 12.2%.