The preliminary estimates by the Ministry of Economy, Trade and Industry (METI) showed Wednesday that the industrial production in Japan rose 1.7 percent m-o-m in August, while economists had forecast an advance of 1.5 percent m-o-m after an 8.7 percent m-o-m surge in July.

The main contributors to the August increase were higher production in such industries as motor vehicles, iron, steel and non-ferrous metals, and electronic parts and devices. On the contrary, production machinery, electrical machinery, and Information and communication electronics equipment, and pulp, paper and paper products had a negative impact on the reading.

In y-o-y terms, Japan’s industrial output fell 13.3 percent in August after a 15.5 percent plunge in July.

The METI also said that shipments rose 2.1 percent m-o-m, but declined 13.8 y-o-y in August, while inventories decreased 1.4 percent m-o-m and 6.0 percent y-o-y.

According to the survey of production forecast, industrial production is projected to increase 5.7percent m-o-m in September and 2.9 percent m-o-m in October.