Japan’s factory output rose by 6.2pc in June to pre-pandemic levels, after a drop of 6.5pc in May. Strong overseas demand countered a slump in domestic consumption amid the COVID-19 pandemic, aiding the recovery, according to reports.
The growth exceeded a median market estimate of 5pc gain and received a boost from a 22.6pc jump in auto production as carmakers sought to compensate for the production slump in May.
Manufacturers expect production to fall 1.1pc in July but increase by 1.7pc in August on robust global demand for machinery and cars.
Production of passenger cars and engines increased by 22.6pc with increased demand in the domestic and global market.
Production of equipment to manufacture chips and machinery increased by 8.9pc.
An increase in domestic infections and the ongoing shortage of semiconductors could limit a strong rebound in growth in July-September, suggested reports.