Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Japan factory output, retail sales seen up, virus resurgence clouds outlook: Reuters poll

Published 11/26/2020, 11:11 PM
Updated 11/26/2020, 11:15 PM
© Reuters. A worker cycles near a factory at the Keihin industrial zone in Kawasaki

© Reuters. A worker cycles near a factory at the Keihin industrial zone in Kawasaki

By Tetsushi Kajimoto

TOKYO (Reuters) - Japan's factory output probably grew for a fifth straight month in October and retail sales likely rebounded for the first time in eight months, a Reuters poll showed on Friday, offering further signs that the economy is gradually recovering from the COVID-19 pandemic.

However, a recent sharp jump in coronavirus cases is clouding the outlook, and expected softness in the job market and declining housing starts indicate a weakening of household purchasing power amid the health crisis.

"Although the economy is picking up, it remains way below the pre-pandemic level," said Takeshi Minami, chief economist at Norinchukin Research Institute. "As sales declines are prolonged, companies are laying off workers."

Trade ministry data out Monday is expected to show industrial output rose 2.1% month-on-month in October, up for the fifth straight month but slowing from the prior month's 3.9% rise, the poll of 17 economists showed.

Separate data is likely to show retail sales jumped 6.4% year-on-year in October, the first gain in eight months and reversing from the prior month's 8.7% drop, the poll found.

Internal affairs ministry data is expected to show the seasonally adjusted jobless rate edged up to 3.1% in October from the previous month's 3.0%, in a worrying sign for job losses caused by the pandemic, the poll found.

Labour ministry data is likely to show the jobs-to-applicants ratio held steady at 1.03 in October, meaning one job was available per job-seeker, the lowest level since December 2013.

© Reuters. A worker cycles near a factory at the Keihin industrial zone in Kawasaki

Factory output and retail sales data will both be released at 8:50 a.m. Monday (2350 GMT Sunday), followed by the housing starts report at 2 p.m. (0500 GMT). The job data will be out at 8:30 a.m. Tuesday (2330 GMT Monday).

Latest comments

No stores, Restaurants shut down again. The real bad stuff still coming to March or until the vaccine comes and by then lot of people run out of money and the economy will be harder to start then what it was now.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.