Japan's industrial production falls 1.5% in June

Japan's industrial production fell a seasonally adjusted 1.5 percent in June from a month earlier when it rose 0.1 percent, the Ministry of Economy, Trade and Industry ( METI) said in a preliminary report on Friday.

The ministry attributed the drop to a softening of domestic and international demand for motor vehicles and cellular phones.

The production index stood at 94.7 against the base of 100 for 2005, marking a second month of decline on the back of a 0.1 percent decline in the previous month.

The index of industrial shipments fell 0.2 percent to 96.2 following a seasonally adjusted 1.7 percent fall the previous month and inventory rose 2.0 percent to 96.5 and inventory ratio by 4.4 percent to 108.1 against the 2005 base of 100, the ministry reported.

Japan's industrial production for the year ended in June, came in at a 17 percent increase on year compared with a previous reading of 20.4 percent, according to the data.

"Production will slow because exports are losing steam," Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. said. "Japan will probably go into an economic lull next year, although it may avoid a double-dip recession."

Source: Xinhua