Japan's industrial output fell 7.2% m/m in May for the second straight drop on weaker production of automobiles and electrical machinery, and information and communication electronics equipment, preliminary data released Thursday by the Ministry of Economy, Trade and Industry showed.
Production of automobiles fell 8.0% in May, (See: MNI: BOJ Tankan Expected To Show Downbeat Manufacturing-Survey.)
Based on its survey of manufacturers, METI projected that industrial production would rise 12.0% on month in June, revised up, and further rise 2.5% in July. Adjusting the upward bias in output plans, METI forecast production would rise 4.9% on month in June. Based on this assumption, production would fall 3.9% on quarter in April-June, the first drop in three quarters.
METI lowered its assessment, saying that industrial production is weakening. The previous view was production was marking time.