MNI BRIEF: Japanese Industrial Output Rises In March

Industrial output rose 3.8% m/m in March for the first rise in three months following February's 0.6% fall, driven by a rise in automobile and electronics production, data released by the Ministry of Economy, Trade and Industry showed on Tuesday.

Production of motor vehicles rose 9.6% m/m in March for the first rise in two months following a 8.1% drop in February and production of electronic parts and devices rose 9.2% in March following the prior month's 0.2% gain.

Based on the survey of manufacturers, METI projected industrial production would rise 4.1% in April (revised up from +3.3% forecast last month) before rising 4.4% in May.

The result will support the Bank of Japan view on industrial production as the outlook for April and May remains strong. The BOJ said on Friday industrial production has been more or less flat as a trend, but it has declined recently, partly due to the suspension of production and shipment at some automakers. (See MNI BOJ WATCH: Ueda Flags Policy Change On Weak Yen-Led Inflation)

Adjusting the upward bias in output plans, METI forecasted production would fall 1.0% m/m in April.

Based on this assumption and if June output were flat, production would rise 4.3% on quarter over April-June, the first rise in two quarters following Q1's 5.4% fall.

However, the ministry lowered its assessment from the previous month, saying industrial production had weakened and is marking time.