Industrial output rose 2.5 per cent in April from a month earlier, offset by an increase in production of general machinery and motors, according to data released by the Japanese government on Monday.
Although the increase was better than the 1.7 per cent increase in March, it was well below the 4.1 per cent expected by economists, mainly due to a decline in car production due to problems with the supply of semiconductor chips.
Manufacturers surveyed by Japan's Ministry of economy, Trade and Industry now expect industrial output to fall 1.7 per cent in May and rebound by 5 per cent in June.
The Japanese government has kept its assessment of industrial output unchanged, saying it is picking up.
Another set of data showed that Japanese retail sales surged 12 per cent in April from a year earlier, mainly due to the statistical base effect. Retail sales fell the most in more than 20 years in April last year as a result of the epidemic.
Compared with March, retail sales in Japan fell 4.5 per cent in April after a quarter-on-quarter adjustment, as consumer confidence was affected by the latest measures to curb novel coronavirus infection.