Data released by Japan's Ministry of Economy, Trade and Industry on Tuesday showed that the country's industrial production increased by 0.5% in May compared to the previous month. This marks the second consecutive month of growth, but the rate of expansion fell short of market expectations, which had anticipated a 1.1% rise.
According to a survey conducted by the ministry, manufacturers are forecasting a seasonally adjusted output increase of 3.7% for June, while production in July is expected to remain flat month-on-month.
In May, the production of transport equipment saw a significant increase of 4.6%, and the output of inorganic and organic chemicals rose by 3.7%.
This industrial production indicator is expected to be one of the key factors the Bank of Japan will closely monitor when making future decisions regarding potential interest rate hikes.
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