Industrial Output Rises 4.1%; Bourse Ignores Jobless, CPI Data
May 12, 2011
Stronger-than-expected July industrial production data boosted Japan's bond market, while investors largely ignored other jobless and consumer price index figures released Friday. The government announced industrial production for July increased 4.1% from the previous month, well beyond the 3.4% forecast by analysts. Investors then lifted the price of the benchmark 10-year bond up 0.22 to 100.32. The Ministry of International Trade and Industry reported Friday that July production at Japan's factories and mines, after adjustment for seasonal factors, shows continued moderate growth. Industrial shipments, after adjustment for seasonal factors, climbed 3.3% in July from June. Adjusted inventories slid 1.1%. Meanwhile, the market didn't pay much attention to July jobless data and the August consumer price index because they were in line with expectations, analysts said. Japan's jobless rate for July improved to 3.4% from 3.5% in June, while the overall number of jobless fell to 2.21 million people -- the lowest level so far in 2011. The consumer price index for the greater Tokyo metropolitan area rose 0.1% in August from the year-earlier month before adjustment for seasonal factors. The rise was lower than the 0.2% advance economist had forecast. Meanwhile, Japan's housing starts in July rose 22% from the year-earlier month to 157,114 units, the fifth consecutive month of year-on-year rises, the Construction Ministry reported Friday. Private housing starts in July rose 33% on the year to 67,863 units, while rental housing rose 19% to 54,595. Meanwhile, multi-unit dwellings rose 6.6% to 31,967 and company housing rose 13% to 2,689. Multi-unit starts include condominiums. The construction ministry said private housing rose sharply because of continued low lending rates at the Japan Housing Loan Corp.. Industry analysts say demand is also strong because buyers are bringing forward purchases ahead of a planned rise in Japan's consumption tax next April.
