MNI DATA IMPACT: Japan July Industrial Output +1.3% M/M

     TOKYO (MNI) - Japan's industrial production rose by 1.3% m/m in July, led

by growing production and shipments in the machinery and automobile sectors,

Ministry of Economy, Trade and Industry (METI) data released Friday showed. 

     Here are key points in the data highlighted by MNI: 

--Industrial production rose 1.3% m/m in July, up from the 3.6% y/y drop in June

and beating an MNI survey of a 0.3% y/y gain. 

     --Shipments rose 2.6% m/m in July, improving from the 3.3% fall in June.

The increase was led by the rise in shipments of machinery and automobile

industries.

     --Inventories fell 0.3% m/m from the previous 0.3% m/m gain, marking a

first drop in six months. Inventories will fall along with the rise in

shipments, though production may increase, METI said. 

     --Industrial production may rise 1.3% month-on-month in August (revised up

from 0.6% in the previous forecast), and fall 1.6% m/m in September, METI

forecasted.

     --METI kept its assessment unchanged, saying "factory output is marking

time". Previously they saw "factory output weakening". 

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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