Updated
Updated · The Business Times · Jun 30
Japan Factory Output Rises 0.5% in May, Missing 1.1% Forecast
Updated
Updated · The Business Times · Jun 30

Japan Factory Output Rises 0.5% in May, Missing 1.1% Forecast

3 articles · Updated · The Business Times · Jun 30

Summary

  • Japan’s industrial output rose 0.5% in May from April, undershooting the median market forecast for a 1.1% gain despite marking a second straight monthly increase.
  • Transport equipment led the advance with a 4.6% month-on-month rise, while inorganic and organic chemicals output increased 3.7%, helping keep overall production in positive territory.
  • Manufacturers surveyed by the trade ministry expect seasonally adjusted output to jump 3.7% in June before flattening in July.
  • The May reading adds to the data the Bank of Japan is weighing as it assesses whether economic conditions support further interest-rate increases.

Insights

After decades of fighting deflation, is Japan's new inflation problem a sign of economic revival or a looming crisis?
As Japan's yen hits a 40-year low, can its economy withstand the Bank of Japan's next interest rate hike?
Will Prime Minister Takaichi's massive stimulus plan spark growth or push Japan's record debt to a breaking point?