Japan's industrial output up 1.3% in April

According to The Wall Street Journal, the survey conducted by Dow Jones Newswires and the Nekkei showed a 2.7 percent gain as expected by the economists in April.

But the current Japan output was 1.3 percent in April, lower than expected but higher compared to 1.2 percent in March.

Strengthening of exports, from January to March, have enhanced the gross domestic product of the country by 4.9 percent.

Increased overseas order for products has also helped to have more output. The domestic companies have increased orders slowly which can later help the economy to grow and increase the employment opportunities.

The external trade is expected to boost growth in the coming months.

According to a survey conducted by Ministry of Economy, Trade and Industry, manufacturers are positive about growth and expect 0.4 percent increase in May and 0.3 percent increase in June.

Sectors that witnessed growth
The shipments increased to 1.6 percent while inventories rose to 0.3 percent.

Japan saw 40 percent increase in exports. Reportedly, automakers also announced rise in sales and production gains.

According to Bloomberg, Japan's giant automaker Toyota Motor Corp. reported 61.5 percent excess production of cars, trucks and buses in April as compared to last year, irrespective of continuous recalls tarnishing the image of the company.

The petroleum and coal products industry reported increase in output by 4.2 percent. The fabricated metal products sector also surged 3.3 percent.

Other side of the industrial production
Apart from increase in output for the second consecutive month, the nation's unemployment rate climbed to 5.1 percent and the domestic demand relinquished.

Further, decrease in consumer prices by 1.5 percent also led to continuing deflation in the economy.

As per the government's subsidies programme for energy sufficient goods, car and truck manufacturers expect a fall in demand leading to decrease in output to 1.4 percent in May and 2.6 percent in June.

On the other hand, flat screen TV production declined by 3.8 percent, where as laptop computers production fell by 18.9 percent.

Some analysts have shown doubt on market growth due to the current status of Europe's debt problems that are likely impact on China's trade, leading to further affecting Japan's exports to China and its trading terms with Europe.

But according to a survey conducted by Ministry of Economy, Trade and Industry, manufacturers are positive about growth and expect 0.4 percent increase in May and 0.3 percent increase in June.