Monthly industrial output grew 3 percent in June, marking the first month-on-month rise in three months, according to a preliminary report released Thursday by the Ministry of International Trade and Industry.

The surprisingly robust growth -- the largest gain in 30 months -- was attributed by the ministry to improvement in the general machine industry due to demand in public works and private investment, as well as car exports to North America.

The seasonally adjusted index of industrial production reached 98.1, against a 100-point benchmark based in 1995.

Cars, auto parts and monthly magazines contributed the most to the index's increase in June, the report says.

Although industrial production has finally hit bottom, whether it will start to turn up depends on future trends in final demand for capital goods and consumer durable goods, MITI officials said.

The shipment index increased for two consecutive months, with the index up 3.1 percent in June to reach 100. The general machine sector, as well as the chemical and hardware industries, were the biggest contributors behind the shipment rise.

Meanwhile, the inventory index dropped 0.3 percent to 96.4 in June, marking a decline of four consecutive months and the lowest level since December 1994.

Among major contributors were the electric and miscellaneous industries as well as the steel industry.

The inventory-shipment ratio index slipped 3.6 percent to 103.2, the first decline in three months.

With output of personal computers, mobile phones, steel exports to Asia and automobiles expected to grow in July and August, MITI expects the industrial output index to rise by 0.5 percent and 3.7 percent, respectively, in these months.

On a quarterly basis, the index declined by 1 percent to 96.5 for the April-June period compared with the previous quarter due to a reactionary slump in April and May following the output rush at end of the fiscal year in March.

The shipment index also dropped by 2.1 percent to 97.8, while the inventory index declined by 1 percent to 96.4 and the inventory ratio index dropped 0.8 percent to 105.5.