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REPEAT: MNI 5 THINGS: Japan Mar Factory Output Up, Q1 Down

Repeats Story Initially Transmitted at 05:34 GMT Apr 27/01:34 EST Apr 27
     TOKYO (MNI) - The key points from preliminary March industrial production
released on Friday by the Ministry of Economy, Trade and Industry (METI).
     * The index of industrial production rose 1.2% on month in March to a
seasonally adjusted 103.9 (100 in the 2010 base year), coming in stronger than
the MNI median economist forecast for +0.5%, but the rebound in March and
February (+2.0% m/m) was not strong enough to lift the first quarter output
after the 4.5% drop in January.
     * The second straight month-on-month rise was led by higher output of
electronic parts and devices, chemicals and transport equipment. However,
shipments fell 0.2% on month for the first drop in two months on declines in
vehicles, fuels and consumer electronics.
     * In the January-March quarter, factory output slumped 1.4% from
October-December 2017, when it rose 1.6%. It was the first quarter-on-quarter
drop in eight quarters.
     * Based on its survey of manufacturers, METI projected that industrial
production would rise 3.1% on month in April (revised down from +4.0% forecast
last month) and fall 1.6% in May.
     * Adjusting the upward bias in output plans, METI forecast production would
rise at a slower pace of 1.4% on month in April. Based on this assumption and if
output is flat in June, industrial production would rise 1.9% on quarter in
April-June, the first rise in two quarters.
     * METI maintained its assessment, saying industrial production is "picking
up moderately." But it also pointed out that shipments were down in March and
inventories entered a buildup phase. The ministry downgraded its view in
February, when it released weak January data.
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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