MNI DATA IMPACT: Japan June Industrial Output Down 3.6% M/M

     TOKYO (MNI) - Japan's industrial production slid by 3.6% m/m in June,

falling  after two months of gains, led by lower production in the automobile

and production machinery sectors, which reported 8.8% and 6.9% drops

respectively, Ministry of Economy, Trade and Industry (METI) data released

Tuesday showed. 

     Here are key points in the data highlighted by MNI: 

--Industrial production fell 3.6% m/m in June, sharply down from the 2.3% m/m

gain in May and also lower than the 2.0% fall forecast in an MNI survey, marking

the first drop in three months. 

     --Shipments decreased 3.3% m/m in June, down from the 1.6% gain in May.

Declines were led by the drop in shipments of durable consumer goods, including

passenger cars.

     --Inventories slowed to 0.3% m/m from the previous 0.6% m/m. However,

inventories may increase as shipments fall, which may cause a further drop in

production, METI warns. 

     --Industrial production may rise 2.7% month-on-month in July (revised up

from 0.3% in the previous forecast), and rise 0.6% m/m in August, METI said.

     --METI kept its assessment, 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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