Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Japan's June factory output seen falling, retail sales up, but at slower pace: Reuters poll

Economy Jul 26, 2019 01:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

TOKYO (Reuters) - Japan's factory output is expected to have slipped in June after rising the previous two months, a Reuters poll showed on Friday, as slowing global growth and the protracted U.S.-China trade war put more pressure on manufacturers worldwide.

Industrial production was forecast to slide 2.0% in June from the previous month, after a 2.3% jump in May and a 0.6% gain in April, the poll of 17 economists showed.

A cooling of overseas demand due to the trade war and rising protectionism have weighed heavily on Japan's economy this year, hurting exports and pushing manufacturers' confidence to a three-year low.

"Exports are on a downtrend, which is having a detrimental impact on production activities and manufacturers' capital spending," said Takeshi Minami, chief economist at Norinchukin Research Institute.

"Though industrial production had risen for the second straight months in May, inventory has built up and adjustment pressures are considered to be high."

The most recent data showed Japan's exports fell for a seventh straight month in June, signaling a deepening of external strains on the world's third-largest economy ahead of a scheduled nationwide sales tax hike in October that is expected to dent consumption.

The trade ministry will publish the factory output at 8:50 a.m. July 30, Japan time (2350 GMT July 29).

The Bank of Japan (BOJ) is largely expected to keep monetary policy steady at its two-day policy meeting set to end on Tuesday, after a lack of immediate action by its European counterpart this week.

Still, BOJ Governor Haruhiko Kuroda is likely to use his post-meeting briefing to stress his readiness to ramp up stimulus if the economy loses momentum to hit its 2% inflation target, analysts said.

Data on the nation's retail sector, due a day before the factory output numbers, is projected to show sales edged up 0.2% last month from a month earlier, the poll found, decelerating from a 1.3% increase in May.

Policymakers are hoping a recovery in private consumption will offset pressures from slowing external demand ahead of the planned sales tax hike to 10% from 8% in October.

The poll also showed the jobless rate remained steady at 2.4% in June from the previous month, and the jobs-to-applicants ratio was stable at 1.62.

"The unemployment rate is expected to come in at a low level again in June," said Kenta Maruyama, economist at Mitsubishi UFJ Research and Consulting.

"Labour supply and demand is still really tight, companies are facing a strong labour shortage, so it will stay at a low level."

The government will release jobs data at 8:30 a.m. on July 30 (2330 GMT on July 29).

Japan's June factory output seen falling, retail sales up, but at slower pace: Reuters poll
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email