There is some good news on industrial production from in Japan, which is the world’s second largest economy.
For the month of May 2009, the industrial output has gone up by a steep 5.9% compared to a month ago, making it the third successive monthly growth.
JAP
The increase is attributed to the replenishment of inventory by all key customers, and in the coming months, the outlook is expected to remain uncertain. There is no sustained increase seen in actual consumption, which is a bad sign. All the key sectors like electronics and automobiles registered healthy growth in the month of May 2009.

The huge stimulus spend by the Japanese government in the last few months could have been a key contributor to the industrial output recovery. The government cannot keep on pumping up the stimulus spending, as it could stoke up inflation and also lead to creation of huge debts on government books.

IT IS IMPORTANT TO NOTE, THAT YEAR ON YEAR, THE INDUSTRIAL PRODUCTION IN MAY 2009, IS A STEEP 30% LOWER, WHICH IS A CAUSE FOR CONCERN.