MNI 5 THINGS: Japan Feb Factory Output Up But Q1 Seen Down

     TOKYO (MNI) - The key points from preliminary February industrial

production released on Friday by the Ministry of Economy, Trade and Industry

(METI).

     * The index of industrial production rose 4.1% on month in February to a

seasonally adjusted 103.4 (100 in the 2010 base year), coming in weaker than the

MNI median economist forecast for +5.1%. It didn't make up for the 6.8% slump in

January, prompting METI to predict factory output is "unlikely to post a gain in

the first quarter."

     * The first month-on-month rise in two months was led by higher output of

passenger cars, production machines and electronic parts.

     * Based on its survey of manufacturers, METI projected that industrial

production would rise 0.9% on month in March (revised up from -2.7% forecast

last month) and gain 5.2% in April.

     * Adjusting the upward bias in output plans, METI forecast production would

rise at a slower pace of 0.5% on month in March. Based on this assumption,

industrial production would fall 2.0% on quarter in January-March, the first

drop in eight quarters.

     * METI maintained its assessment after downgrading it last month, saying

industrial production is "picking up moderately."

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

[TOPICS: MAJDS$,M$A$$$,M$J$$$,MT$$$$]