Japan's economic activity rose 0.2 percent in the April-June term from the previous term, when measured from the supply side, and will probably stay positive in the July-September period, the Ministry of Economy, Trade and Industry said Wednesday.

Recovering industrial production will probably underpin the index of overall industrial activity -- considered a close indicator of gross domestic product -- to grow for a third straight quarter in the July-September period, a ministry official said.

The index scored 101.3 against the 1995 base of 100, sparked by a 3.8 percent climb in the industrial production index, more than offsetting falls in construction, tertiary industry and public-sector activities.

"Industrial activity shows signs of recovery in some areas," the ministry said, upgrading its view from the January-March quarter, for which it said the overall industrial activity showed a "tendency to stagnate."

Personal consumption rose 1 percent for the first gain in five quarters due to brisk consumption of such durable goods as videocassette recorders and cars, but business spending lost 1.3 percent for the sixth successive quarterly decline.

Personal consumption and business investment in facilities and equipment are considered key to a self-sustaining recovery. The economy is currently being driven by exports.

Exports rose 0.7 percent following a 12.2 percent surge in the previous quarter, and imports grew 3.8 percent after a 2.5 percent climb in the pervious quarter, both on the positive side for the second consecutive quarter.