According to data released by the Japanese government on Monday, industrial output increased 2.5% month-on-month in April, and the increase in production of general machinery and motors offset the decline in automobile and transportation equipment production.

Although this increase is better than the 1.7% increase in March, it is far lower than economists' expectations of 4.1%. The main reason is the decline in automobile production due to semiconductor chip supply issues.

Manufacturers surveyed by Japan's Ministry of Economy, Trade and Industry currently expect industrial output to fall 1.7% in May and rebound by 5% in June.

The Japanese government kept its assessment of industrial output unchanged, saying it was picking up.

Another set of data shows that retail sales in Japan soared 12% year on year in April, mainly due to the statistical base effect. Affected by the pandemic, retail sales in April last year recorded the biggest decline in more than 20 years.

Compared to March, retail sales in Japan fell 4.5% month-on-month after seasonal adjustments in April, as consumer confidence was affected by the latest measures to contain COVID-19 infections.