TOKYO (MNI) – Japanese industrial production fell 0.6% in February
from the previous month, revised down from the preliminary reading of
being unchanged, which was also revised from -0.9% reported last month
due to annual revisions to the data, the Ministry of Economy, Trade and
Industry said on Thursday.

Lower demand for chemical products (medicine, shampoo), electronic
parts and devices (semiconductors) and other industries (toys) more than
offset higher demand for general machinery, steel and metal products.

Last month the METI reported that decreases in toys, electronic
devices and small passenger cars more than offset increases in general
machinery and steel.

Output posted the first month-on-month drop in 12 months in
February after surging 4.3% (revised from +2.7%) in January. Production
had already improved from the sharp plunge seen from late 2008 through
early 2009.

Production rose by a record +4.6% m/m in May 2009, the highest
growth under the current data formula with the 2005 base year. The
previously reported record rise of +5.9% in April last year was revised
down to +4.5% due to the annual revisions.

Compared with the year before level, production jumped an unrevised
31.3% y/y in February, following a revised 18.9% rise in January and
recovering from a revised record 38.6% drop in February 2009. The rise
in December 2009, which was revised up to +6.4% from +5.1%, was the
first y/y gain in 15 months.

The latest data also showed that shipments fell 0.2% from the
previous month in February, revised down from the preliminary reading of
being unchanged, which was also revised from -0.2% reported last month.
It followed +4.5% (revised from +2.7%) in January.

Inventories gained 1.6% month on month, unchanged from the initial
estimate, which was revised up from -1.0% reported earlier. It compared
with an unrevised +1.1% in the previous month.

The inventory-to-shipments ratio rose 0.3%, unchanged from the
preliminary figure, which was revised down sharply from +1.8% reported
last month. It compared with +1.8% (revised from +1.1%) in the previous
month.

The capacity utilization index was unchanged in February from a
month earlier to a seasonally adjusted 90.1 (vs. 100 = 2005 average)
after rising a revised 7.1% m/m (+3.9% reported earlier) in the previous
month.

tokyo@marketnews.com
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