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Japan's May factory output growth lagged forecasts

BY Reuters | ECONOMIC | 08:09 PM EDT

By Satoshi Sugiyama

TOKYO, June 30 (Reuters) - Japan's factory output rose at a slower-than-expected pace in May from the previous month, government data showed on Tuesday.

Here are a few details.

-- Industrial output grew 0.5% in May from the previous month, versus the median market forecast for a 1.1% rise, according to the Ministry of Economy, Trade and Industry. It marked the second month of growth.

-- Manufacturers surveyed by the ministry expect seasonally adjusted output to increase 3.7% in June and stay flat in July.

-- In May, transport equipment production rose 4.6% month-on-month, while inorganic and organic chemicals output increased 3.7%.

-- The indicator will be among factors the Bank of Japan will scrutinise as it decides whether to raise interest rates in the future.

(Reporting by Satoshi Sugiyama Editing by Chang-Ran Kim and Shri Navaratnam)

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