Japan’s industrial production climbed for the third straight month in May, ushering in hopes that the economy was finally emerging from the worst recession since the Second World War.
Industrial output in Japan rose by 5.9% in May according to a report released by the Ministry of Trade in Tokyo on Monday. This was the fastest rate of industrial growth since 1953 and analysts expect that output will continue to advance this month as well as the next.
However the growth in industrial production was still lower than what had been forecast by economists surveyed by Bloomberg, who had expected the growth rate to touch 7%. Moreover industries were still manufacturing at 29.5% less than what they had been doing in May 2008.the most crucial requirement for the economy to bounce back will be an increase in consumer demand, both local and international, which drives the largest segment of the Japanese economy.
Despite the slow rate of recovery, finance experts believe that the worst phase of post-war recession might be finally over as manufacturers clear inventories and industrial output rate picks up. The global recession had seen governments coming up with extensive stimulus plans in order to prop up demand and revive capital flows.
