MNI DATA IMPACT: Japan Apr Ind. Output Drops; Shipments Down

     TOKYO (MNI) - Japan's industrial production reported a third monthly fall

in April with shipments also showing a significant drop due to the impact of the

Covid-19 disruptions, according to a release by the Ministry of Economy, Trade

and Industry (METI) on Friday. 

     Here are key points in the data: 

--Industrial production dropped 9.1% m/m in April, a sharp fall on last month's

3.7% m/m contraction and the lowest reading since January 2013. The result was

lower than the MNI median forecast of a 5.4% m/m drop. 

     --The steel and non-ferrous metal, automobile and transportation equipment

industries are the three industries most impacted by the virus. 

     --Shipments decreased 8.8% m/m in April, following the 5.0% m/m drop

registered in March, led by a rapid fall in the automobile industry. 

     --Inventories slowed down to -0.3% m/m from the previous month's 1.9% m/m

increase. While domestic and overseas demand is falling due to the virus,

inventories did not accumulate due the adjustment in production, METI said.

     --METI sees production falling 4.1% (revised down from -1.4%) in May before

rising 3.9% in June. The Ministry revised its assessment lower to "(the

production) is declining quickly", due to the impact of the virus. 

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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