REPEAT: Japan June Factory Output Rebounds; Q3 Seen Up

Repeats Story Initially Transmitted at 00:24 GMT Jul 31/20:24 EST Jul 30

--Japan June Industrial Output +1.6% M/M; MNI Median +1.6%

--Japan METI Forecast Index: July Output +0.8% M/M, Aug +3.6%

--Japan Apr-June Industrial Output +1.9% Q/Q, 5th Straight Rise

--Japan METI Maintains View: Output Shows Signs of Pickup

     TOKYO (MNI) - Japan's preliminary industrial production from the Ministry

of Economy, Trade and Industry released Monday.

     * Industrial production rose a seasonally adjusted 1.6% from the previous

month in June, as expected, posting the first rise in two months after falling

3.6% in May. The MNI survey median economist forecast was +1.6%. In April-June,

output rose 1.9% on quarter, marking the fifth straight quarter-on-quarter rise

after +0.2% in January-March.

     * The increase was led by higher output of passenger cars, chemicals and

electric machines. Compared to a year before, production rose an unadjusted

4.9%, the eighth straight y/y rise after +6.5% in May.

     * The government maintained its assessment, saying industrial production

"shows signs of a pickup."

     * METI forecast for factory output based on its survey: +0.8% on month in

July (revised up from -0.1% projected last month); +3.6% in August. Adjusting

the upward bias in output plans, the METI projected production will fall 0.3% on

month in July. But given the high growth expected in August, the third quarter

output is likely to stay on an uptrend.

     * Shipments rose 2.3% on month in June, the first rise in two months after

falling 2.9% in May, while rising 5.1% on year, the eighth straight y/y

increase.

     * As shipments rebounded, inventories fell 2.2% on month in June, the first

drop in seven months after being flat in May.

     * Shipments of capital goods excluding transport equipment - a key

indicator of the business investment component of GDP data - fell 1.4% on month

in June, the first drop in three months after +2.1% in May. The Cabinet Office

will release preliminary April-June GDP data on Aug. 14.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com