Japan's industrial output rose strongly in January, helped by robust demand for electronics goods, suggesting fast export-led growth in the final quarter of last year had maintained its momentum.
But the official forecast for output in the coming months was less exuberant, and other economic indicators released today showed stubborn price deflation and a rise in the jobless rate.
Industrial production rose a seasonally adjusted 3.4 per cent in January from a month earlier, the Ministry of Economy, Trade and Industry (METI) said.
"A strong reading in output growth of 3.4 per cent suggests that productivity growth is continuing to be led by exports," said Mr Kiichi Murashima, an analyst at Nikko Citigroup.
The figures are the latest evidence that the economy is pulling out of a decade of stagnation. The economy grew at its fastest pace in 13 years in October-December on strong demand for Japanese electronics, cars and steel in China and the United States.