Japan May factory output seen dipping for 2nd month on China lockdown

Japan May factory output seen dipping for 2nd month on China lockdown: Reuters poll.

Japan May factory output, dipping, 2nd month

TOKYO (Reuters) - Japans factory output probably fell in May for a second successive month due to supply chain disruptions caused by strict COVID-19 lockdowns in China, a Reuters poll showed on Friday.

"Bottlenecks from the semiconductor crunch and the components shortage due to Chinas Shanghai lockdown likely kept (Japans) production weak," said Shumpei Fujita, economist at Mitsubishi UFJ (NYSE:MUFG) Research and Consulting.

Some analysts, meanwhile, expected a slight increase in May factory output thanks to robust manufacturing of electronic parts and production machinery.

Less optimistically, Japans production outlook "remains seesawing, with greater concerns now about such things as unexpectedly prolonged disruption to supply and rising raw material prices," Takeshi Minami, chief economist at Norinchukin Research Institute, said.

The poll also found Tokyos core consumer price index - a leading indicator of Japanese price trends - was likely 2.1% higher in June than a year earlier, accelerating from a 1.9% annual rise seen in May.

The industry ministry will release the factory output data on June 30 at 8:50 a.m. (June 29 at 2350 GMT) and retail sales data on June 29 at 8:50 a.m. (June 28 at 2350 GMT).

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