Japan's Industrial Production Rises in September

Japanese industrial output in September rose for the first time in two months, but the uptick is likely to be short-lived amid slowing global demand, the government said Wednesday.

CNBC.com

Industrial production in the month rose a better-than-expected 1.2 percent from August, when it plunged 3.5 percent, according to the Ministry of Economy, Trade and Industry. Economists surveyed by Kyodo news agency had forecast an average 0.3 percent gain.

A boost in production by manufacturers of general machinery, transport equipment and electronics parts and devices helped push the figure into positive territory, the data showed.

However, the government described industrial output as on a "moderately downward trend" and projects output to tumble in the months ahead. It expects production to fall 2.3 percent in October and 2.2 percent in November.

Japan's export-driven economy has been hit hard by growing economic jitters worldwide, which has sapped demand for the country's cars and consumer electronics in key markets like the U.S. and Europe.

Recent earnings reports by major exporters are starting to reveal the extent of the damage so far.

Honda Motor, Japan's second-biggest automaker, on Tuesday lowered its full-year earnings projections after reporting a 41 percent drop in quarterly profit on declining sales and a stronger yen.

On Monday, Japanese camera and printer maker Canon slashed its outlook for the fiscal year and said third-quarter profit plunged as weaker sales and a stronger yen hit its bottom line.

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