"With regard to the outlook, Japan's economy is expected to recover moderately on the back of the resilience in domestic demand and the pick-up in overseas economies,"
-The Bank of Japan
Japan's industrial production rose as much as 1.9% in May from the previous month, compared to the 2% growth estimated initially, the final data from the Ministry of Economy, Trade and Industry revealed Friday. In addition to that, growth in shipments was also revised upwards to 1% from 0.8%, while inventory declined 0.4% instead of the 0.3% fall estimated earlier. The capacity utilization increased 2.3% month-on-month in May, up from the 1.6% advance in the prior month.
Moreover, the BoJ predicts exports and industrial output to rise moderately as the economy is healing, the central bank's monthly report showed Friday. The central bank believes that a pick-up in overseas economies will spur Japan's exports. Public investment is estimated to continue maintaining an upward trend, while housing investment is expected to increase and business fixed investment is seen to follow a moderate upward trend. In addition to that, private consumption is projected to remain resilient, bolstered by improvement in the employment situation.
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