REPEAT: MNI 5 THINGS: Japan Jan Output Down Sharply From Dec

--METI Downgrades View: Industrial Production Picking Up Moderately

     TOKYO (MNI) - Key points from preliminary January industrial production

released Wednesday by the Ministry of Economy, Trade and Industry (METI).

     * The index of industrial production slumped 6.6% on month in January to a

seasonally adjusted 99.5 (100 in the 2010 base year), the lowest since 98.5 in

January 2017, after rising to the highest level in more than nine years in

December. It came in weaker than the MNI median economist forecast for -4.2%.

The first month-on-month decrease in four months was led by lower output of

passenger cars, general machinery and electronic devices, as largely expected.

     * Based on its survey of manufacturers, METI projected that industrial

production would rebound 9.0% on month in February (revised up from +5.7%

forecast last month) before falling 2.7% in March.

     * However, adjusting the upward bias in output plans, METI forecast

production would rise at a slower pace of 4.7% on month in February, which would

not make up for January's 6.6% drop. The projected 2.7% rise in March would not

be strong enough to push factory output back to a recent higher level. Based on

this assumption, industrial production would fall 2.5% on quarter in

January-March, the first drop in eight quarters.

     * METI downgraded its assessment, saying industrial production is "picking

up moderately." Last month, it simply said production was "picking up."

     * The index of industrial production still has room for recovery. In March

2008, just before the start of the global financial crisis, the index was as

high as 117.3.

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