Japan's factories boosted their output in July by a greater margin than expected, delivering a shot in the arm to Japanese shares.
But the figures contrasted sharply with evidence that much of Japan's economy remains in trouble, with unemployment still stubbornly high and household spending failing to show any signs of an upturn.
The industrial output gain, of 0.5% in July, was put down to the apparent improvement in the US economy by observers.
Production of electronic goods including mobile phones and digital cameras was sharply higher, and vendors such as Sony are speaking of continuing their push for bigger market share in areas such as flat-screen TVs.
The gain in output reflects recent figures showing the economy has now expanded for six straight quarters, and a IMF report leaked this week which boosted predictions of growth to above 1% for 2003.
But the worry remains that domestic spending has yet to break out of the doldrums....
