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Japan August data weakens as industrial output contracts
Industrial production fell for a second straight month, while retail sales growth slowed and seasonally adjusted sales swung to a monthly decline.
Japan’s August economic activity data came in softer, with industrial production declining 0.2% to 1.7% month over month, marking a second consecutive monthly contraction and missing expectations for a rebound, according to Action Forex.
Action Forex reported that the seasonally adjusted production index fell to 102.6, shipments dropped 2.5%, and inventories declined 0.5%. Weakness was concentrated in motor vehicles, machinery, and petroleum and coal products, with output down 6.8%, 6.0%, and 13.3% respectively.
In consumption, Action Forex said retail activity cooled, with retail sales growth slowing from 3.7% to 2.7% year over year and the seasonally adjusted measure reversing from a +2.1% monthly gain to -1.2%. Total retail sales were JPY 13.052tn, with motor vehicle sales rising 17.7% year over year.
Action Forex added that Japan’s industrial output forecast calls for a rebound, with manufacturers surveyed by METI expecting production to rise 3.2% in September and 3.1% in October, and METI maintained its view that production is “fluctuating indecisively.”