Japan output rises 2.4pc

TOKYO, Feb 28 (BBC): Japan's industrial production has risen for the third successive month in January, underlining optimism that the economy is recovering. Factory output was up 2.4 per cent from the previous month in January, compared with a 3.3 per cent gain in December, the Trade Ministry said. It was driven by demand for transport equipment, machinery and metals. Japan was overtaken as the world's second-largest economy recently and has been trying to boost growth. Analysts said that January's output figure was slightly weaker than many of them had expected. However, they said the figures still pointed to improving conditions for growth and output. "Data overall confirmed a steady improvement in production given that output is expected to increase in February and March," said Yasuo Yamamoto of Mizhuo Research. This view was backed up by a Trade Ministry survey which showed that manufacturers now expect factory output to increase by 0.1 per cent in February and 1.9 per cent in March. Despite the positive outlook, analysts warn that Japan's recovery is still fragile and could be derailed by external, as well as internal, factors. The most recent issue facing the global economy is the unrest in the Middle East and the subsequent spike in oil prices.