Japan's industrial production rose an unadjusted 3.4 percent in fiscal 2003, marking a second straight yearly rise, the government said Wednesday.
The increase was attributed mainly to steady demand for digital home appliances.
The index of output at mines and factories stood at 96.5 against the 2000 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report.
The 3.4 percent growth is the highest since a 4.3 percent expansion was registered in fiscal 2000, indicating that the world's second-largest economy is on a recovery path.
In March, the index of industrial output inched up a seasonally adjusted 0.1 percent to 97.3 after February's 3.8 percent contraction.
Despite the modest growth in a single month, METI revised its assessment upward, saying, "Industrial production is in a gradual recovery trend."