TOKYO, April 30 Reuters Japan39;s factory output grew more than expected in March, government data showed on Tuesday, thanks largely to automakers resuming production after safety scandals.
Industrial production rose 3.8 in March from the previous month, the Ministry of Economy, Trade and Industry METI showed, better than the median market forecast for a 3.5 rise.
Coupled with solid output forecasts for April and May, the strong rebound in industrial production in March suggests that the likely slump in GDP in Q1 should be followed by a strong rebound this quarter, said Gabriel Ng, assistant economist at Capital Economics.
Motor vehicle production rose 9.6 in March from the previous month. Output in regular passenger cars and regular trucks boosted the overall figures.
Japanese automaker Toyota Motor restarted production of some models in early March after irregularities in certification tests were found in affiliate Toyota Industries39; diesel engines.
Toyota39;s smallcar unit Daihatsu, which was mired by misconduct related to rigged collisionsafety tests, has gradually resumed vehicle production from February onwards.
We39;ll continue to monitor the global economy and the resumption of plant operations by the automobile industry, a METI official said.
The manufacturing of production machinery, including semiconductor production equipment, went up 11.6. Electronic parts and device output increased 9.2, according to METI.
Manufacturers surveyed by the industry…