Industrial production in Japan climbed a seasonally adjusted 2.0 percent in May compared to the previous month, the Ministry of Economy, Trade and Industry said on Friday - expanding for the fourth straight month.
That beat forecasts for an increase of 0.2 percent following the 0.9 percent gain in April.
On a yearly basis, industrial production shed 1.0 percent - also exceeding expectations for a contraction of 2.4 percent following the 3.4 percent decline in the previous month.
Upon the release of the data, the METI upgraded its assessment of output, saying that "industrial production shows signs of picking up at a moderate pace."
Industries that contributed to the increase included general machinery, electrical machinery and chemicals. Commodities that contributed to the increase included parts of steam turbines, parts of boilers and water tube boilers.
According to the Survey of Production Forecast in Manufacturing, production is expected to fall 2.4 percent in June and add 3.3 percent in July.
Industries that contribute to the decline in June include transport equipment, general machinery and others.
Industries that contribute to the gain in July include general machinery, transport equipment and others.
Shipments in May increased 0.8 percent on month, rising for the first time in three months. Shipments also were down 2.3 percent on year.
Industries that contributed to the increase included electronic parts, petroleum and coal products and electrical machinery.
Inventories in May eased 0.3 percent on month, falling for the first time in two months. Inventories also dropped 2.7 percent on year.
Industries that contributed to the decline included petroleum and coal products, electronic parts and devices and paper products.
The Inventory Ratio in May shed 2.1 percent on month, falling for the second consecutive month. It was also down 5.1 percent on year.
Also on Friday:
• The overall national inflation rate in Japan came in at -0.3 percent in May, the Ministry of Internal Affairs and Communications said- beating forecasts for -0.4 percent after showing -0.7 percent in April.
Core CPI, which strips out the volatile costs of food, was flat on year - matching forecasts after coming in at -0.4 percent in the previous month.
On month, overall CPI was 0.1 percent and core CPI came in at 0.2 percent.
Overall inflation for the Tokyo region, considered a leading indicator for the nationwide trend, was flat on year in June versus forecasts for 0.1 percent after dipping 0.2 percent in May.
Core CPI for Tokyo was up 0.2 percent - in line with expectations and up from 0.1 percent in the previous month.
On month, overall inflation was down 0.1 percent and core CPI was unchanged.
• Retail sales in Japan gained a seasonally adjusted 1.5 percent on month in May, the Ministry of Economy, Trade and Industry said, standing at 11.479 trillion yen. That beat forecasts for a gain of 0.7 percent following the revised 0.6 percent increase in April.
On a yearly basis, retail sales were up 0.8 percent - also topping expectations for a flat reading following the 0.1 percent contraction in the previous month.
Sales from large retailers dipped an annual 0.4 percent to 1.589 trillion yen, missing forecasts for a gain of 0.2 percent after dropping 2.3 percent a month earlier.
The data also showed that commercial sales added 0.5 percent on year to 37.478 trillion yen, while wholesale sales gained 0.3 percent to 25.999 trillion yen.
• The average household spending in Japan was down 1.6 percent on year in May, the Ministry of Internal Affairs and Communications said, standing at 282,366 yen. That missed forecasts for an increase of 1.3 percent following the 1.5 percent gain in April.
The average of monthly income per household stood at 422,724 yen, up 1.5 percent on year. The average of consumption expenditures per household was 307,926 yen, up 1.4 percent on year.
• The unemployment rate in Japan came in at a seasonally adjusted 4.1 percent in May, the Ministry of Internal Affairs and Communications said - unchanged from the April reading but missing forecasts for 4.0 percent.
The job-to-applicant ration was 0.90 - matching forecasts and up from 0.89 in the previous month. The participation rate was 59.7 percent, up 0.2 percent on year.
The number of employed persons in May was 63.40 million, an increase of 430,000 or 0.7 percent on year. The number of unemployed persons in May was 2.79 million, a decrease of 180,000 or 6.1 percent on year.
• The Nomura/JMMA Manufacturing PMI came in with a score of 52.3 for June, up from 51.5 in May and more firmly above the 50-point level that separates expansion from contraction.
• Upon the release of the data, the Japanese yen held steady against its major counterparts, trading bear 98.48 against the U.S. dollar, 128.4738 against the euro, 150.30 against the pound and 104.19 against the Swiss franc.
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