Japan Manufacturers’ Activity to Keep High Level in F2008

Japanese automobile demand will decease by 0.6% to 5.306 million units in fiscal 2008 starting April from fiscal 2007, according to survey by Ministry of Economy, Trade and Industry. METI expects US automobile output decreases by 0.7% to around 16 million units under slowed economy with subprime loan issue while the European demand is flat. The automobile demand is expected to keep high level. METI expects the manufacturers output will keep high level. METI expects Japanese standard car demand decreases by 0.1% to 2.965 million units in fiscal 2008 from fiscal 2007. The mini-vehicle demand increase by 1.3% to 1.46 million units. The demand is expected to decrease by 1.8% to 163,000 units for standard truck, by 4.2% to 271,000 units for small truck and by 7.1% to 432,000 units for mini-truck. METI expects Japanese shipbuilding increases by 11.4% to 17.263 million gross ton in fiscal 2008 from fiscal 2007. METI forecasts the building increases to 17.954 million gross ton in fiscal 2009, 18.672 million gross ton in fiscal 2010 and 21.844 million gross ton in fiscal 2014. METI expects industrial machinery order receipt will increase by 2.4% to record 6.749 trillion yen in fiscal 2008 from fiscal 2007. The electric machinery output will increase by 1% to 5.722 trillion yen when the heavy electric machinery output increases by 2% to 3.96 trillion yen while the output decreases by 1% to 1.762 trillion yen for appliances due to slower housing start.