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MNI BRIEF: Japan June Factory Output Gains As Autos Recover

(MNI) Tokyo

Japan's industrial output rose 8.9% m/m in June for the first m/m rise in three months thanks to a recovery of automobile production, preliminary data released on Friday by the Ministry of Economy, Trade and Industry showed.

Production of automobiles rose 14.0% m/m in June. Based on its survey of manufacturers, METI projected that industrial production would rise3.8% on month in July (revised up from +2.5% forecast last month) and further rise 6.0% in August.

Adjusting the upward bias in output plans, METI forecast production would fall 0.9% on month in July. Based on this assumption, and if September output were flat, production would rise 6.1% on quarter in July-September, the first rise in two quarters following -2.8% in Q2.

METI raised its assessment, saying that industrial production is marking time. The previous view was production is weakening.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
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MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
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