Japan’s May industrial output came in far below expectations, rising just 0.5% mom versus the anticipated 3.4% mom growth. Though production improved in key sectors such as machinery and autos, five categories—led by non-auto transport equipment—recorded declines.
Shipments rose 2.2% mom, while inventories fell -1.9% mom, offering some positive signals, but not enough to shift the ministry’s cautious tone.
METI maintained its assessment that output “fluctuates indecisively”. A poll of manufacturers showed expectations for a muted 0.3% mom rise in June and a -0.7% mom drop in July.
