Japan upgrades factory output

TOKYO, May 27 (Reuters): Japan's government upgraded its assessment of factory output for the first time in a year, saying in its monthly economic report that it showed signs of picking up and signalling production may have bottomed out.

The government also upgraded its assessment of imports and public works while leaving its overall economic assessment unchanged for a third straight month. There was no revision to other components such as private consumption and capital expenditure.

"The Japanese economy is recovering at a moderate pace, although it recently appears to be pausing," the monthly report said.

The report was presented at a meeting of relevant cabinet ministers and ruling coalition lawmakers and Bank of Japan (BOJ) Governor Kazuo Ueda.

"Industrial production shows movements of picking up recently, although manufacturing activities declined due to the effects of suspension of production and shipment by some automotive manufacturers," the report said.

It said there were signs of a pick-up in factory output, upgrading its assessment of this metric for the first time since May last year, according to a Cabinet Office official who compiled the monthly report.

The scandal that had emerged at Toyota's compact car unit Daihatsu led to the suspension of output and shipments, curbing consumer spending on cars in the first quarter.