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

Repeats Story Initially Transmitted at 06:34 GMT Feb 28/01:34 EST Feb 28
--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

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