The Ministry of Economy, Trade and Industry said that Japanese industrial output rose a seasonally adjusted 2.4% in January 2011 from the previous month, as the transportation equipment and general machinery sectors performed well, while the telecommunications, machinery and chemical sectors showed weakness.

The result was lower than the median forecast for a 3.8% rise in a poll of economists surveyed by Dow Jones and the Nikkei. However, it marked the third straight month of gains, following a 3.3% rise in December 2010.

The continued gains may add to the view that the economy is bouncing back in the current January to March 2011 quarter from a lull in the previous period, when gross domestic product contracted an annualized 1.1%. But the weaker than expected reading could temper any expectations for stronger gains.

Manufacturers polled by the ministry expect their orders to rise 0.1% in February, and climb 1.9% in March 2011.

(Sourced from www.dowjones.com)