MNI DATA IMPACT: Japan May Industrial Output Up 2.3% M/M

     TOKYO (MNI) - Japan's industrial production increased for a second straight

month in May, up 2.3% m/m, helped by recovering output, Ministry of Economy,

Trade and Industry (METI) data released Friday showed. 

     Here are key points in the data highlighted by MNI: 

--Industrial production rose 2.3% m/m in May, outpacing both the 0.3% m/m

increase forecast in an MNI survey and the 0.6% gain in April. 

     --Shipments rose 1.6% m/m in May, following the 1.7% gain in April. Growth

was led by a rise in the automotive industry, along with the electric and

communication machinery industries.

     --Inventories decelerated to 0.6% m/m from previous 1.6% m/m, due to higher

output, according to METI.

     --Industrial production may fall 1.2% month-on-month in June (revised up

from -4.2% in the previous forecast), and rise 0.3% m/m in July, METI said.

     --METI kept its assessment which said "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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