And there we have it.
As we have noted in recent days, there were signs in February that the country’s economic rebound from the slowdown in the 4th quarter of last year was accelerating before the March 11 triple disasters of earthquake, tsunami and nuclear crisis at the Fukushima power plant.
Retail sales were a bit better, unemployment unexpectedly fell sharply, car sales had been solid, exports were picking up and yesterday came the news of an unexpected rise in industrial output in the month, contrary to market forecasts for a fall.
Yesterday, Japan’s Ministry of Trade and Industry said industrial production in Japan rose 0.4% in February compared to January.
That beat market forecasts for a 0.2% fall, but was slower than the 1.3% rise in January.
On an annual basis, industrial production climbed 2.8% – below expectations for a 4.0% rise following the 3.5% rise in January.
As a result of the data, the Government maintained its assessment of industrial production, saying that it continues to show upward movement.
The department said a survey of manufacturers included with the data projected production up 1.4% in March and down 1.3% in April.
Transport equipment, general machinery and chemicals were the biggest drivers of the increase, according to the ministry.
But it cautioned that the March 11 earthquake and tsunami were likely to have a significant impact in future numbers.
They continue to have an impact on Japanese business activity and confidence.
Annual inflation was steady on a headline basis at zero in February, down 0.1% from January.
That’s why the Tankan survey of big business sentiment from the Bank of Japan, due out tomorrow will be interesting.
It was conducted last month, finishing on March 11, the day of the quake and tsunami.
Many companies reply in the first couple of weeks of the month long period when the survey is done, so the results will probably overestimate business confidence, compared to what it would be now.
Japan’s Chief Cabinet Secretary and spokesman, Yukio Edano told reporters in Tokyo yesterday that he could not say when conditions at the crippled Fukushima Daiichi nuclear complex would be under control.
"We have been considering various measures, but at this stage we are not in a situation where we can say we will have this under control by a certain period," Edano told a news conference, according to Reuters.
No wonder, reports yesterday said that very high radiation readings were again found in the sea off Fukushima late Tuesday around 330 metres south of the shore and the stricken reactors.
The company (Tokyo Electric) says the readings of radioactive iodine-131 were 3,355 times the legal limit.
But the Government and the company say the radiation quickly dissipates.
But there’s no explanation as to why it is happening.
Honda Motor Corp cut production in the US States and Canada from last night due to parts supply shortages in the wake of Japan’s massive earthquake and tsunami earlier this month, while Toyota has told US dealers to cutback on parts orders for the time being for some models because of shortages.
Japan’s finance minister said yesterday that the government still intends to draft a tax and social security overhaul blueprint by the end of June, countering suggestions that it may postpone the deadline to focus on rebuilding the nation’s quake-hit northern areas.
The government says it will have a special second budget to handle the cost of the clean up and rebuilding task for the damaged areas next month.
Japan’s leading business lobby is set to ask its member firms to slash electricity use so as to prevent temporary blackouts from affecting production activities this summer.
Tokyo Electric Power Company predicts that it will be able to end the ongoing rotating power outages in early May. But the firm says it will have to re-implement the blackouts this summer, when air conditioner use increases. Cuts of up to 25% have been suggested
The utility is carrying out the planned blackouts after the March 11th earthquake and tsunami brought some of its power plants to a halt.
The Japan Business Federation, or Nippon Keidanren, says it will ask member firms to cut their electricity use by 25% in coming months.
The companies will also be asked to draw up power conserving plans such as suspending production lines and introducing power generators.
The group’s members include all the biggest and most powerful domestic producers, service groups and exporters.
The cuts will impact production and the economy.
