Japanese industrial output rose for the seventh consecutive month, by 1.4 percent, raising hopes that the governement’s economic stimulus was bearing fruit, according to figures released by the Ministry of Economy, Trade and Industry. Inventories dropped to their lowest levels in 21 years. Predictions were good for continued strong growth in manufacturing in October and November, as well.

The output gains were led by auto manufacturers and makers of technology. Industrial output is still down 18.9 percent compared to a year ago, but the Bank of Japan has been mulling whether to draw down the economic support it has given to financial firms to rescue the economyafter the financial meltdown following the collapse of Lehman Brothers late 2008. Reuters, Xinhua