Will Next Week’s Japan Economic Data Confirm Temporary Slowdown in Q3?
Japan will release important economic data next week. The Trade Ministry will issue the factory output data on November 30 and the retail sales data on November 29. The Internal Affairs Ministry will publish Tokyo-area inflation and job data on November 30.
Japan's economy, the world's third largest, shrank more than expected in the third quarter, hit by natural disasters and sluggish exports. The next week’s reports are likely to suggest Japan's third-quarter economic contraction was a temporary slump caused by natural disasters. But slowing global demand and the intensifying US-China trade war cloud the outlook for export-reliant Japan.
Industrial output is expected to rise by 1.2% in October from the previous month. The September figure has been revised to a 0.4% decline from the 1.1% fall initially reported. Retail sales are projected to rise 2.6% in October from a year earlier, accelerating from September's revised 2.2% annual increase.
According to analysts’ forecasts, Japan's jobless rate likely remained at 2.3% in October, and the jobs-to-applicants ratio inched up to 1.65 jobs from 1.64 in September. The core consumer prices index (CPI) for the Tokyo area is forecast to grow to 1.0% yoy in November, unchanged from October.