Japan's March factory output growth provides some relief for economy

By Daniel Leussink

TOKYO, April 28 (Reuters) - Japanese factories saw output rise for the second straight month in March as strong global demand for high-tech chips helped to ease some doubts that are weighing on the country's economic outlook.

After struggling to stage a convincing recovery from the coronavirus pandemic, the world's third-biggest economy is facing pressure from Russia's war in Ukraine, high energy and commodity prices and strict Chinese lockdown measures that are hurting demand.

Factory output expanded 0.3% in March from the previous month, official data showed on Thursday, as growing production of items such as those of semiconductors offset a drop in motor vehicle output.

That meant output growth slowed from February, when it grew sharply by 2.0%. The increase was weaker than a 0.5% gain forecast in a Reuters poll of economists.

Separate data showed retail sales were stronger than expected after the government lifted pandemic curbs, rising 0.9% in March from a year earlier, which was bigger than the median market forecast for a 0.4% rise.