The October index of output at factories and mines stood at 98.5 against the base of 100 in 2010, the highest level since April 2015, said Ministry of Economy, Trade and Industry in a preliminary report.
The industrial production in October shows signs of growing at a moderate pace, said the ministry, attributing the increase to the depreciation of the yen.
Weak yen could help boost the country’s export and in turn promote production in companies, it added.
Since the U.S. presidential election on Nov. 8, the yen has depreciated over 10 percent versus the U.S. dollar. The possibility of yen’s further depreciation against the dollar is rising in short term amid expectation of rate hike by the U.S. Federal Reserve next month, according to analysts.
However, some analysts expect Japanese manufacturers in sectors of electronics parts and devices and auto might face business difficulties as U.S. President-elect Donald Trump would likely promote policy of trade protectionism.
The output index, which rise 0.6 percent in September and jump 1.3 percent in August following a 0.4-percent decline in July, is projected to climb 4.5 percent in November and shed 0.6 percent in December, according to manufacturers polled by the ministry.
In October, industrial output in the electronics parts and devices sector, which manufactures liquid crystal panels and chips, grew 4.6 percent, the highest among all sectors.
In the same month, the transport sector including the auto sector, the country’s key industry, inched up 0.6 percent. Enditem