Japan's industrial output rose for the third straight month in May, up 5.9% from April, affirming market expectations of an easing economic slump, official data showed on Monday. The increase in the production of transport equipment, electronic gadgets as well as steel and iron was the main reason for the consistent uptrend, according to a preliminary report from Japan’s Ministry of Economy Trade and Industry (METI). But on a year-on-year basis, industrial output was down 29.5% in May, METI said, adding that the country's industrial output had been on a decline for six months since last September until March 2009. Nonetheless, the monthly production numbers could see a similar improvement in June and July based on a market survey. Japanese manufacturers were projecting output to rise 3.1% in June and 0.9% in July, it said.