Japan's industrial output down for third month

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TOKYO, June 28 (AFP): Japan's plants and factories cut their output unexpectedly in May for a third straight month, the government said today, adding to jitters over the impact of the slowing US economy.
The government downgraded its assessment of industrial production in light of the weak report. But analysts forecast a rebound in the coming months as companies prepare for the build-up to the 2008 Beijing Olympics.
Output fell by 0.4 per cent in May from the previous month, defying expectations of a 0.8 per cent increase after April's 0.2 per cent decline, a report from the ministry of economy, trade and industry showed.
"Production is staying flat as a whole," the ministry noted, turning more cautious than last month when it said output was on "a gradual, rising trend."
Japan's economy is in the midst of its longest sustained recovery since World War II but the slowing US economy has raised concerns for exports.