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Wednesday, 29th June 2011
In Business In Japan,

Factory output levels in Japan rise for second consecutive month

The factory output levels in Japan rose by 5.7 per cent in May, compared to the previous month.

This represents the second month in a row the country's factory output has increased, showing Japan's manufacturing sector is recovering from this March's twin disasters of the earthquake and tsunami.

However, some sectors of Japan's manufacturing industry are warning that the situation is still precarious.

Yoshiki Shinke, who works at Daiichi Life Research Institute, warned BBC News that the Japanese economy may suffer if more companies decide to outsource production.

"Longer-term, power constraints are a downside risk to the economy as more companies may decide to shift their production overseas, which would weigh on Japan's potential growth rate," he said.

It has recently been revealed that the country's car manufacturing sector is still yet to recover, with Toyota's domestic production last month dropping by over half, compared to May last year.

Written Kimberley Homer