28 May 2002, 11:57  Japan Factory Production Probably Rose 0.7% in April

Tokyo, May 28 (Bloomberg) -- Japanese industrial production probably rose for a third straight month in April, as manufacturers made more chips and machinery for export, economists said. Production probably rose 0.7 percent last month from March, according to the median of 39 forecasts in a Bloomberg News survey. From a year ago, production probably fell 6.1 percent. The report will be released 8:50 a.m., Japan time, tomorrow. Exporters such as Nissan Motor Co. and Advantest Corp. probably fueled Japan's first gain in gross domestic product in a year last quarter. With growth forecast to the slow in the U.S., exporters may not be able to repeat that performance this quarter, capping further gains. ``Japan is completely dependent on the U.S.,'' said Tomoaki Shishido, an economist at Nomura Research Institute, who expects U.S. growth to slow to less than 3 percent this year, after Japan's biggest trading partner grew at a 5.6 annual pace last quarter. ``Japan's recovery is going to be weak, and it will be a while before it spreads through to business spending,'' he said. Japan's economy probably grew at a 6.8 percent annual pace last quarter as exports and consumer spending surged, economists in a Bloomberg News survey said. Business spending, which makes up about 15 percent of the economy, probably fell last quarter and may keep falling the rest of this year, dragging on growth, Shishido said. A stronger yen may also shorten Japan's recovery from its third recession in a decade. The central bank's sale of yen last week did little to stem a 5 percent rise against the dollar this year.

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