JAPAN’S factory output surged in November as production in the auto sector benefited from a recovery in global parts supplies, lifting prospects for a strong fourth-quarter economic rebound. Despite the output jump, the Japanese manufacturing outlook remained clouded by the risk of slowing overseas activity due to a resurgence of the pandemic and a persistent shortage in global chip supplies. Factory production gained 7.2 percent in November from the previous month, posting its largest jump since 2013 when comparable data first became available, thanks to rising output of motor vehicles and plastic products. That meant production rose for the second straight month after increasing 1.8 percent in October and posted a faster rise than the 4.8 percent gain forecast in a recent poll of economists. “Output recovered to where it was previously because car production rebounded,” said Takeshi Minami, chief economist at the Norinchukin Research Institute. “But seen from a global perspective, supply bottlenecks and especially the chip shortage are likely to be prolonged so that will slow down the recovery pace of output.” The data released yesterday showed output of cars and other motor vehicles surged 43.1 percent from the previous month in November, also the most since comparable figures became available eight years ago, while that of plastic products rose 9.5 percent. Despite the stronger output, Japanese automakers are still unable to completely shake off the drag from persistent global parts and chip supply issues. Japan’s top automaker Toyota Motor Corp. said last week it would suspend production at five domestic factories in January due to supply issues and the health crisis. Manufacturers expected output to gain 1.6 percent in December and 5 percent in January. (SD-Agencies) | 