Japan’s factory output expanded for a second consecutive month in May, although the pace of growth fell short of market expectations, according to government data released on Tuesday.
Industrial production rose 0.5% month-on-month, below economists’ median forecast of a 1.1% increase, figures from the Ministry of Economy, Trade and Industry showed.
Despite the weaker-than-expected performance, manufacturers remain optimistic about near-term production. Companies surveyed by the ministry expect seasonally adjusted output to rise 3.7% in June before remaining unchanged in July.
The increase in May was supported by stronger production in several sectors, led by transport equipment, which rose 4.6% from the previous month. Output of inorganic and organic chemicals also increased 3.7%.
The industrial production figures are expected to be closely watched by the Bank of Japan as policymakers assess the strength of the economy and consider the timing of future interest rate decisions.
Reuters
