Japan Industrial Output September 2007

Japan's industrial production fell in slightly September from the record August level, as makers of cars and general machinery cut manufacturing following a slowdown in overseas demand. Production was down a seasonally adjusted 1.4 percent from a month earlier, when it surged 3.5 percent, according to data from the Trade Ministry in Tokyo today.



Claus will probably have a fuller comment on the general Japan economy situation up in the near future, so at this point I would simply note that this reading is hardly a very bad one, since the August level was very high after the increase to cover production lost after the earthquake. On the other hand it is very hard to decide what this industrial data really tells us about what to expect from the up and coming Q3 2007 reading since, apart from slowing export growth, domestic demand remains weak, and additionally so since a recent change in building regulations has caused a delay in home construction, with housing starts plummeting 43 percent - to a 41-year low - in August.