Industrial output rose a seasonally adjusted 0.5 percent in October on strength in machinery and metal products makers, but the reading was weaker than expected due to sluggishness in the high-tech and auto industries.
The government reported Monday that the index of output at mines and factories stood at 86.1 against the base of 100 for 2005. It rose for the eighth straight month, the longest streak since 2005 was made the base year, the Ministry of Economy, Trade and Industry said in a preliminary report.
Industrial production slowed its pace of growth. The headline reading was well below analysts' expectations for a 2.5 percent increase. It rose 2.1 percent in July, 1.6 percent in August and 2.1 percent in September.
The government suggested the slower growth is temporary. "Developments for a recovery can be seen" in output, METI said in its assessment, using similar wording for the seventh straight month.
It also said the outlook remains bright, forecasting a 3.3 percent rise in manufacturers' production in November and a 1.0 percent advance in December. The ministry had projected 3.1 percent growth for October.
The October index of industrial shipments gained 1.3 percent to 88.8. That of industrial inventories was down 1.5 percent to 93.3, indicating makers have made progress in their inventory reductions.
General machinery makers saw a 5.7 percent rise in production on strong demand for devices to produce semiconductors for export to Taiwan and South Korea and components for steam turbines at power plants. Makers of fabricated metal marked a 2.6 percent output rise amid growth in orders for bridges and aluminum cans for beverages.
Bucking the overall advance, production by electronic parts and devices makers was down 1.0 percent amid sluggish demand for such products as liquid crystal elements for use in televisions.