January Industrial Output rises; CPI falls

Japan's industrial output rose for the 11th straight month in January amid rising demand in China and elsewhere in Asia. The 2.5 percent gain in factory output from December exceeded expectations.

Industrial shipments in January rose 2.4 percent month-on-month, the Ministry of Economy, Trade and Industry said Friday, led by general and electronics machinery. Industrial inventories expanded 1 percent.

Economists said rising demand in China and other Asian countries has helped spur production of mainstay Japanese exports like cars and consumer gadgets.y."

But in a sign of further worry for Japan's economy, consistently falling prices showed little sign of improvement in January.

Japan's key consumer price index, which excludes volatile fresh food prices, fell 1.3 percent from the same month last year, declining for an 11th straight month, according to the Ministry of Internal Affairs and Communications.

http://news.yahoo.com/s/ap/20100226/ap_on_bi_ge/as_japan_economy_1