Japanese industrial output increased by 4 percent in December from the previous month, more than the 2.8 percent median rise expected by analysts, giving hopes for a quicker recovery of the national economy.
The trend was reversed after a 2.7 percent fall of the index in November.
Compared to December 2010, industrial output fell by 3.5 percent, considering the effect of the March 11 natural disasters.
Telecom industry, cars and electronics were the sectors that contributed most to the recovery registered in December.
Satoshi Osanai, an economist at Daiwa Institute of Research, said that “there are recovery signs” in industrial production, but warned that “we need to pay attention to risk factors, including the global economic trend amid the European debt problems and the yen’s strength.”
According to a survey among Japanese producers, further increase of the industrial output is expected in January (2.5 percent) and February (1.2 percent).