Japan's industrial production rose at its fastest pace since the beginning of the year in September, data showed on Wednesday.
Industrial production rose 2.7 percent on month, above expectations for a 2.2 percent rise and up from a 1.9 percent decline in August, marking the fastest expansion since January.
Following the release the Japanese government said that industrial production is "seesawing."
"[This trend of seesawing] is clearly what we see, but today's data is strong... Overall on a month-on-month basis, retailers and producers are up. We're seeing now that production is picking up as well," said Martin Schulz, Senior Economist at Fujitsu Research Institute.
Japanese manufacturers see October output down 0.1 percent on month, slightly better than their previous forecast for a 0.2 percent decline, according to the Ministry of Economy, Trade and Industry. Manufacturers see November output rising 1.0 percent on month.
"The destocking process is likely to keep [industrial production] weak in the near term. Although September figures show a sign for recovery... relatively high inventory levels remain a concern, especially for transportation equipment and general-purpose, production and business oriented machinery," Harumi Taguchi, principal economist at IHS Global Insight said in a note.
"The industry outlook also suggests a moderate uptrend," she said. "If production matches this outlook and holds at November level in December, quarter-on-quarter growth for the fourth quarter is expected to rise by 1.3 percent after two consecutive quarters of declines."
In April, the government raised the consumption tax to 8 percent from 5 percent to rein in the country's budget-to-GDP ratio. It was the first tax hike in 17 years.