Japan’s factory output increased in February but at a slower pace than January. However, Japanese manufacturers expect industrial production to slump in March due to the coronavirus pandemic. According to government data, industrial output rose 0.4% in February, slower than a 1.0% gain in January. However, it surpassed a median market expectation for a 0.1% increase.
The output from automakers and machinery producers declined in February mostly due to factory shutdowns in China which caused delays in procuring parts. A survey by the government unveiled that manufacturers expected to decrease by 5.3% in March and rebound 7.5% in April. A government official said that the expectations might be too optimistic as the survey was conducted in early March when manufacturers had less clarity on the economic impact of the pandemic.
A separate survey showed retail sales rose 1.7%, while the jobs-to-applicants ratio plunged to a near three-year low of 1.45 in February. This signifies that Japan’s economy was missing momentum even before the pandemic worsened in March.
Japan’s GDP contracted an annualized 7.1% in the fourth quarter of 2019 due to the US-China trade war. Analysts expect Japan’s economy to shrink again this quarter, bringing the country into a recession.
Tags: AlwaysFree,Asia Pacific,English,Japan,NEA
Published on March 31, 2020 4:10 PM (GMT+8)Last Updated on March 31, 2020 4:10 PM (GMT+8)
