Japan Industrial Output Improves 2.0% On Month In June

(RTTNews) - Industrial production in Japan expanded 2.0 percent on month in June, the Ministry of Economy, Trade and Industry said on Monday.

That was shy of expectations for a gain of 2.4 percent following the 2.2 percent decline in May.

On a yearly basis, industrial production slipped 0.4 percent after jumping 4.2 percent in May.

Upon the release of the data, the METI revised its assessment of industrial production, saying that it is showing signs of increase at a moderate pace.

Industries that contributed to the increased included motor vehicles, electronic parts and devices and business-oriented machinery. These were offset by weakness among petroleum and coal products, pulp, paper and paper products, and transport equipment.

Shipments were up 1.5 percent on month and 0.6 percent on year, while inventories slipped 0.1 percent on month and gained 5.6 percent on year. The inventory ratio sank 1.2 percent on month and jumped 9.8 percent on year.

Industries that mainly contributed to the increase in shipments included motor vehicles, transport equipment and electronic parts and devices. These were offset by declines among communication electronics equipment, production machinery, and petroleum and coal products.

Industries that mainly contributed to the decrease in inventories included motor vehicles, iron, steel and non-ferrous metals, and fabricated metals. These were offset by gains among communication electronics equipment, electronic parts and devices, and petroleum and coal products.

According to the WTI's forecast for industrial production, output is expected to slip 0.2 percent on month in July and rise 1.1 percent in August.

Industries that mainly contributed to the decrease in July include communication electronics equipment, business-oriented machinery and fabricated metals, in that order.

Industries that mainly contributed to the increase in August include communication electronics equipment, chemicals, and business-oriented machinery.

Also on Monday, the METI said that the value of retail sales in Japan was down 0.4 percent on month in June, coming in at 13.225 trillion yen.

That missed expectations for an increase of 0.2 percent following the upwardly revised 1.4 percent gain in May (originally 1.3 percent).

On a yearly basis, retail sales climbed 5.9 percent matching forecasts and up from 5.8 percent in the previous month.

Commercial sales were down 0.3 percent on month and up 0.2 percent on year at 49.001 trillion yen, while wholesale sales slipped 0.6 percent on month and 1.8 percent on year at 35.776 trillion yen.