Japan industrial production rises 0.7% in May

Japan's Industrial production slightly accelerated its pace of growth during the month of May, as the revised figures for the Industrial Production Index revealed a pick up in the rate of expansion compared to the preliminary reading from June 30.
The index rose 0.7% in May compared to a month ago, up from the 0.5% monthly rise originally reported, the Ministry of Economy, Trade and Industry (METI) in Tokyo said on Monday.
Industrial production was, however, less strong over the year with a growth rate of 1.0% in May.
Shipments fell 1.0% in May when compared to April this year, while inventories rose 3.0% over the month, METI also informed.
Rising production, inventories and the inventory ratio provide support for the overall performance of Japan's economy, while the monthly fall of shipments may reflect lower overseas demand.
Japan's economy expanded at a stronger pace than initially reported in the three months to March, with a surge in private consumption ahead of the April 1 tax hike boosting output.
Japan's gross domestic product (GDP) growth rose to 1.6% in the first quarter, data from Japan's Cabinet Office showed on June 8, and followed 0.2% growth in the final quarter of 2013.
On an annual basis, Japan's GDP rose 6.7% in the March quarter, coming in stronger than the initial GDP reading of 5.9%.
The main cause for the upward revision to the GDP figure came from business investment, which was upped from 4.9% quarter-on-quarter growth to 7.6%.
Overall though, solid first-quarter growth was mainly a reflection of the boost in spending ahead of the April 1 consumption tax hike from 5% to 8%.