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Industrial output in Japan plummeted 25.9 percent on year in May, the Ministry of Economy, Trade and Industry said on Tuesday.

That was well shy of expectations for a drop of 11.3 percent following the 15.0 percent decline in the previous month.

On a seasonally adjusted monthly basis, industrial production sank 8.4 percent - again missing estimates for a drop of 5.6 percent following the 9.8 percent slide in April.

Upon the release of the data, the METI downgraded its assessment of industrial production, saying that it is declining rapidly.

Industries that contributed to the decline in production included motor vehicles, production machinery and iron and steel.

Shipments were down 8.4 percent on month and 26.5 percent on year, while inventories fell 2.5 percent on month and 0.4 percent on year.

Industries that contributed to the gall in shipments included motor vehicles, production machinery and iron and steel. Industries that contributed to the fall in inventories also included motor vehicles, production machinery and iron and steel.

According to the METI's production forecast, industrial production is expected to gain 5.7 percent on month in June and 9.2 percent on month in July.

Also on Tuesday, the Ministry of Internal Affairs and Communications said that the unemployment rate in Japan came in at a seasonally adjusted 2.9 percent in May - missing expectations for 2.8 percent and up from 2.6 percent in April.

The job-to-applicant ratio was 1.20, also missing forecasts for 1.23 and down from 1.32 in the previous month.

The number of employed persons in May was 66.56 million, a decrease of 760,000 from the previous year, while the number of unemployed persons in May was 1.98 million, an increase of 330,000 from the previous year.



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