Japanese Prime Minister Taro Aso on Friday, June 26, 2009, attended the ceremony at the Prime Minister's Office to present the Prime Minister's Commendations to Contributors for the Promotion of Gender-Equal Society.

Japan today reported a rise in industrial production by 5.9% in May -  - matching a gain in April that was the biggest jump since March 1953, when production rose 7.9%. Meanwhile, car production fell for the eighth straight month in May, tumbling 41.4% from a year earlier and the government reported that retail sales fell for a ninth straight month.

Manufacturers forecast output will rise in June and July but at a slower pace and the Bank of Japan’s quarterly Tankan survey this week, is expected to show sentiment among large manufacturers recovered from a record low.

Japan produced 542,282 vehicles in May, the Japan Automobile Manufacturers Association (JAMA) said Monday in a monthly report.

JAMA also said exports from Japan fell for the eighth straight month, plunging 55.9% from a year earlier to 233,217 vehicles.

JAMA forecast earlier this year that domestic new car sales for 2009 would be 4.86m, 4.9% below 2008 and for the first time in 31 years, Japanese new car sales will be below 5m.

Japanese production in May was boosted by higher output of mobile phones and electronic devices, which had seen hit by a dip in demand due to the global economic slowdown.

Japan has introduced sales incentives for electric, hybrid, natural gas, plug-in hybrid and some diesel vehicles by making exemptions from some purchase taxes. The government expects the subsidies to add 690,000 vehicles to sales this fiscal year. Consumers who bought cars after April 10th when Prime Minister Aso announced the program, are eligible.

Toyota said last Thursday, its domestic output plummeted by 41.9% in May from a year earlier, down from a drop of 56.1% in April and a 58.4% plunge in March.

Also Monday, a government report showed retail sales fell 2.8% in May from a year earlier - - a ninth monthly decline.