Production edged up 1.5% in June

Industrial production rose a seasonally adjusted 1.5 percent in June from the previous month, the Ministry of Economy, Trade and Industry said Friday.

The figure was boosted by rising demand for electronic parts and devices for televisions, computers, mobile phones and video game consoles, the ministry said.

The index of output at mines and factories stood at 101.1 against the 2000 base of 100, after registering a 2.8 percent fall to 99.6 in May, METI said in a preliminary report.

The 1.5 percent rise was the same as the average forecast issued by market participants surveyed by Kyodo News.

The ministry kept its overall assessment of output unchanged for the 10th straight month, stating that output "tended to be flat."

A METI official said the production data have been undulating recently and that there is no evidence that manufacturers will emerge from the current flat output stage in the near future.

"Makers are still in the middle of adjusting their inventories. Some of them intentionally pile up stocks to prepare for increases in demand," he said.

"The situation varies with sectors, but some manufacturers expect their conditions will improve toward the end of the year, factoring in rises in U.S. demand for the Christmas season."