The increase was smaller than market expectations, underscoring the lingering impact of global supply chain disruptions. Analysts, however, see signs of an improving outlook.
"While other sectors' production predictions seem optimistic, carmakers output plans are reliably solid," Minami said, attributing it to the automakers' lean production processes that affect a wide variety of parts suppliers.
"And these growth (plans) are strong," he said, but added that it will still likely take until early 2022 for companies to make up the multi-month production losses.
Manufacturers' plans reflect eased impacts of chip and parts shortages, a government official said, though he warned of risks in firms' supply chains, including any fallout associated with COVID-19's Omicron variant.
Separate data on Tuesday showed Japan's jobless rate stood at 2.7% in October, down from the previous month, while an index gauging job availability fell to 1.15 from 1.16 in September.
After a contraction in July-September, economists polled by Reuters expect the world's third-largest economy to rebound annualised 5.1% in the current quarter thanks to uptick in consumption, partly due to the lifting of the pandemic-induced state of emergency curbs.
The Bank of Japan will hold a rate-review meeting on Dec. 16-17, where the central bank is set to keep its ultra-easy policy unchanged and may decide whether to extend pandemic-relief lending programmes beyond current March 2022 deadline.
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