MNI DATA IMPACT: Japan Mar Industrial Output Down 0.9% M/M

     TOKYO(MNI) - Japan's industrial production fell 0.9% month-on-month in

March according to data released Friday by the Ministry of Economy, Trade and

Industry (METI). 

     Here are key points in the data highlighted by MNI: 

--Industrial production fell 0.9% m/m in March, wiping off the increase of 1.4%

reported last month and also worse than an MNI survey forecast for a 0.1% drop.

As a result, officials have lowered their assessment to "factory output

weakening" from the previous assessment that "production is marking time". 

     --Output in 7 out of 15 industries declined month-on-month, more than the 5

seen in the previous month. March slowdowns were "expected but the pace was

larger than the plan", according to METI officials.

     --Shipments fell 0.6% m/m in March, down from the 1.8% rise in February.

The decrease was led by falls in the automotive and production machinery

industries.

     --Inventories rose 1.6% m/m in March from 0.5% m/m, the second increase in

three months. The increase was largely caused by lower production and shipments.

     --Industrial production may rise 2.7% month-on-month in April (the growth

was revised up from 1.1% in the previous forecast), and rise 3.6% m/m in May,

METI said.

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

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

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