**Japan’s factory output rose for the ninth straight month in November, up 2.6% from October, as the manufacturing sector continued to recover.**The rise, which was higher than expected, came in response to growing overseas demand for Japanese goods.
Japan’s exports to the rest of Asia totalled 2.7 trillion yen ($30bn) in November, 4.7% up on October. It was the first rise in 14 months.
But domestic demand remained weak, as consumer spending fell again.
Retail sales were 1% lower in November than a year earlier, the 15th monthly fall in a row, as consumers continued to cut spending because of job market fears.
Japan returned to economic growth in the second quarter of 2009 after spending a year in recession, but falling salaries have prompted renewed worries about deflation.
Average wages declined by 2.8% in November from a year earlier, marking their 18th consecutive monthly fall.