But outlook points to increases for March, April Industrial production in Japan fell for a fifth month in a row in February, according to data released Monday from Japan's Ministry of Economy, Trade and Industry, although some signs pointed to better results for the coming months. The industrial production index fell to a seasonally adjusted 68.7, down 9.4% in February from the previous month and down 38.4% from the previous year, data showed. Industrial production is suffering from the longest running decline since 2001, according to Bloomberg. "I do not believe that this announcement is a shock to anyone," Andreas Schuster, strategist at CLSA Tokyo. Weakness in transport equipment, general machinery and electrical machinery were the biggest contributors to the decline, according to the data. "Anecdotal evidence is that in certain areas, but certainly not yet overall, inventory adjustment has already run its course and production is increasing, albeit from very depressed levels," said Schuster. That glimmer of hope was also reflected in the report's forecast, where companies expect output to grow in March and April, he said. "As such the look back to February is not too meaningful," Schuster said. Production is expected to increase 2.9% in March and to rise 3.1% in April, according to the Survey of Production Forecast in Manufacturing, the ministry said. Shipments were at 70.9 in February, down 6.8% from a month ago and 36.8% below the previous year.

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