MNI BRIEF: Japan Industrial Output Rises 2% M/M In June

Japan industrial output rose 2.0% m/m in June, the first rise in two months, following a 2.2% decline in May due to higher production for motor vehicles, electronic parts and devices, and general-purpose and business oriented machinery, data released by the Ministry of Trade and Industry showed on Monday.

June's data was in line with the Bank of Japan's prediction that industrial production has been more or less flat. Production for motor vehicles rose 6.1% m/m in June, the first rise in two months, following an 8.9% fall in May as the shortage of semiconductors eased. Motor vehicle production posted its third straight rise, increasing 1.4%, but slowing from 5.2% recorded the previous month, reflecting weak demand overseas.

Based on its survey of manufacturers, the ministry projected industrial production would fall 0.2% in July, revised up from a 0.6% fall forecasted last month, before rising 1.1% in August. Adjusting the upward bias in output plans, the ministry predicted production would fall 2.7% m/m in July. Based on this assumption, and if September output were flat, production would fall 1.4% q/q over Q3, the first drop in two quarters following the 1.3% gain in Q2.