Japanese industrial production fell -1.1% MoM and -0.3% YoY in March, below expectations of a -0.4% MoM decline.

• Shipments fell -2.8% MoM and -1.3% YoY due to weaker auto and electrical equipment & electronics shipments.
• As activity was weaker, inventories increased 0.9% MoM but were still down -1.0% YoY.
• The inventory-sales ratio jumped 4.5% MoM and was up 0.7% YoY.
• Industrial production is forecasted to growth 1.3% MoM in April and 3.9% MoM in May.