Japan's factory output rose 1.3% in June from the previous month, according to government data released in Tokyo. The result was stronger than the median market forecast, which had pointed to a 0.7% increase.
The better-than-expected reading suggests Japan's industrial sector performed more firmly than analysts had anticipated at the end of the period. Month-on-month factory output is closely watched as a gauge of manufacturing momentum in the country's broader economy.
The figures were published by the Ministry of Economy, Trade and Industry. The ministry's release also referred to a survey of manufacturers on their production outlook, indicating that officials are tracking how companies expect output to develop in the near term.
With Japan factory output beating forecasts in June, the data adds an important signal for markets assessing the strength of domestic manufacturing. Attention is likely to remain on future industrial production reports to see whether this increase can be sustained.
