MNI DATA IMPACT: Japan May Ind. Output Fell 8.4% M/M; 4th Drop

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

in May due to the impact of the Covid-19 disruptions, according to a release by

the Ministry of Economy, Trade and Industry (METI) on Tuesday. 

     Here are key points in the data: 

--Industrial production dropped 8.4% m/m in May, following last month's 9.1% m/m

contraction. The result was lower than the MNI median forecast of a 5.7% m/m

fall. 

     --Shipments decreased 8.4% m/m in May, after dropping 8.8% m/m in April,

led by a rapid fall in the automobile industry. 

     --Inventories dipped further by 2.5% m/m from the previous month's 0.3% m/m

decrease. The automobile industry, the biggest contributor to lowering the

inventory, fell rapidly due to the adjustments in production, METI said.

     --METI sees production rising 5.7% (revised up from 3.9%) in June before

rising 9.2% in July. The Ministry kept to its assessment of "(the production) is

declining sharply", 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$$$,MT$$$$]