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Japan December industrial output rises 1.1%

By MarketWatch
TOKYO
Japanese industrial production rose 1.1% on month in December, the Ministry of Economy, Trade and Industry said, on a demand rush ahead of an April sales tax increase                                        
The rise after adjustment for seasonal factors was smaller than the 1.3% increase forecast by economists surveyed by the Wall Street Journal and the Nikkei. It also comes after a 0.1% decline in November                                        
Economists have said that despite few gains in export volumes -- traditionally a driver of Japan's economic recovery -- output has been lifted by firm domestic demand                                        
The government plans to raise the sales tax to 8% from 5% in April, prompting many businesses and individuals to make large purchases before then                                        
The increase in industrial output was due to a rise in production in the general purpose and production machinery sectors as well as electronic parts and devices                                        
Companies expect output to rise 6.1% in January, and then increase 0.3% in February, according to a corporate survey released with the data                                        
METI kept its assessment that output was picking up unchanged
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