(Bloomberg) — Japan’s industrial production jumped by a record in November, beating forecasts and adding to evidence that the country’s recovery was solidly underway before the omicron variant of the coronavirus started to spread around the globe.
A bounce back in the auto industry helped production climb 7.2% from October’s level, the biggest rise in decades as output recovered from supply chain snags, data from the economy ministry showed Tuesday. Analysts had expected a 4.8% increase. Manufacturers said they also plan to raise production this month and next.
Despite last month’s surge, production remained below July’s level, an indication of how damaging global supply chain blockages have been to Japan’s key manufacturing sector.
The spread of the omicron variant of the coronavirus could also upend progress if it triggers a return to more restrictions abroad or at home.
Still, November’s strong output gains and plans for higher production in months ahead suggest Japan’s economy may be back on a more steady recovery path after shrinking in five of the last eight quarters.
Separate reports showed the unemployment rate ticked up to 2.8%, while a measure of demand for workers indicated that positions on offer still outnumbered job seekers.
(Adds detail on production drivers.)
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