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Japan's industrial output grows more than expected in June |
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July 29, 2000
TOKYO (AP) - Japanese industrial production rose 1.7 in June from May, the Ministry of International Trade and Industry said Friday, indicating that output remains on solid footing. The rise was larger than expected by economists surveyed by Dow Jones, who estimated on average an increase of 1.2 percent from the prior month after adjustment for seasonal factors. Output also increased in the April-June quarter from the prior period, rounding off the fourth straight quarter of rises and marking the longest string of quarterly increases since the 12-month period ended March 1997. The ministry said the outlook for future production levels looks promising. Based on a survey of companies, MITI forecast that output will fall 0.2 percent in July from June and then increase 2.8 percent in August, suggesting that industrial production will remain relatively firm in the July-September quarter. Economists watch industrial production figures for clues to whether Japan is emerging from a decade-long economic slump. The world's second-largest economy grew 0.5 percent in the fiscal year that ended March 31, following two straight years of contraction. Rising output helps boost corporate profits, meaning manufacturers can finance new capital investment, retain more workers and pay more overtime wages. The government expects the economy to grow 1.0 percent in the fiscal year that ends March 31, 2001. |