Japan's industrial production fell 3.3 percent in May from a month earlier, the Ministry of Economy, Trade and Industry said in a preliminary report on Friday.
According to the ministry, the drop in production was due in part to a slump in the production of cars, automobile parts and construction equipment in May, with the Golden Week string of national holidays being a significant contributing factor. The decline in production in the recording period compares with a median estimate of a 3.2 percent drop and follows a 4.0 percent increase in April.
In the latest data set, the index of output at factories and mines, on a seasonally adjusted basis, stood at 100.4 against the base of 100 for 2010, the ministry said.
The index of industrial shipments dropped 2.8 percent to 98.3, while inventories edged up 0.1 percent to 111.4, according to the latest figures.
Manufacturers surveyed by the ministry expect factors output to rise 2.8 percent in June and fall 0.1 percent in July. W
eighing heavily on the decline in May was sluggish output in the transport machinery sector which declined 11.7 percent, while general-purpose, production and the business-linked machinery sector, dropping 2.6 percent, also weighed heavily, the ministry's data showed.
Based on the preliminary data, however, the ministry maintained its basic assessment that industrial production shows signs of improving.
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