— Japan Industrial Output Posts 3rd Straight M/M Rise In May
TOKYO (MNI) – Japanese industrial production rose 0.1% in May from
the previous month, revised from the preliminary reading of -0.1%,
backed by demand from chemicals, information and communication
electronics equipment and electric machinery, data from the Ministry of
Economy, Trade and Industry released on Tuesday showed.
Output posted the third consecutive month-on-month rise, after the
gains of 1.3% in April and 1.2% March.
Industrial production in the second quarter of 2010 is now expected
to rise 2.0% from the previous quarter, up from the previous estimate of
+1.9% q/q.
Production has continued to improve from the sharp plunge seen from
late 2008 through early 2009. It rose a record +4.6% m/m in May last
year.
Compared with the year before level, production rose a revised
20.4% y/y in May (preliminary +20.2%), up for the sixth straight month
following a 25.9% rise in April.
The 6.4% rise in December 2009 was the first y/y gain in 15 months.
Production in the first quarter of 2010 rose 27.5% from a year
earlier, a reversal from the 4.3% drop in the fourth quarter of 2009 and
the 19.4% fall in the third quarter of 2009.
Last month, when the METI reported the preliminary output figures
for May, it repeated its assessment adopted in June 2009 that:
“Industrial Production continues to show an upward movement.”
The latest data also showed that shipments fell an unrevised 1.7%
from the previous month in May.
Inventories rose an unrevised 2.0% month on month.
The inventory-to-shipments ratio rose 4.8%, revised up from a
preliminary +4.4.
The capacity utilization index was up 0.8% in May from a month
earlier to a seasonally adjusted 91.3 (vs. 100 = 2005 average) after
being unchanged in the previous month.
tokyo@marketnews.com
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