2013.05.2708:48:00UTC+00Research: Japan's Industrial Production Likely to Show Further Recovery

Quotes from Societe Generale Cross Asset Research:

-Japan's March industrial production marked the fourth consecutive monthly gain (0.9% mom). The government's assessment was revised up again, by explaining that "production shows signs of picking up at a moderate pace".

-Production did indeed rise by 2.2% qoq in Q1, led by transport equipment production (up 10.9% qoq). Looking ahead, as the recovery in trade with China continues and funds from the fiscal stimulus get spent, industrial production is likely to continue to show a moderate improvement.
-In addition, the survey of production forecasts, which refers to planned increases in the next two months, also suggests a further increase in April (to 0.8% mom), though it points to a decrease in May (0.3% mom.). Against this backdrop, we expect industrial production to have increased by 0.8% mom in April, or -5.3% yoy (data to be released on 31st April).