Japan factory output likely fell for second consecutive month in October

Japan factory output likely fell for second consecutive month in October

A Reuters poll of 17 economists shows that Japan's factory output likely fell for a second consecutive month in October, while retail sales probably grew at the fastest pace since May 2021, underscoring an uneven recovery from the COVID 19 epidemic, according to the TOKYO Japan's factory output.

Prime Minister Fumio Kishida, whose public support is falling, rolls out more stimulus to curb cost-push inflation, which underscores the challenge for the world's third largest-economy to get on a sustainable growth path.

The spectre of a global recession looms large, undermining business sentiment, according to analysts.

The industry ministry's data, due at 2350 GMT Nov. 29, is expected to show industrial output fell 1.5 per cent in October from the previous month, following the previous month's 1.7 per cent decline, according to a poll by the industry ministry.

It was the second month in a row of declines.

While auto output is recovering from supply disruptions such as chip shortages, concerns about the faltering global economy are rising, weighing on demand for electronics parts and devices that are sensitive to the economic outlook, said Takeshi Minami, chief economist at Norinchukin Research Institute.

Retail sales grew 5.0 per cent in October from a year earlier in the year, the fastest annual gain since May 2021, as a result of a glimmer of hope for recovery in private consumption, which makes up more than half of the economy, according to separate data due on 2350 GMT Nov. 28.

The subsiding of a seventh wave of COVID infections has resulted in pent-up demand for cars whose production rebounded from the previous year, analysts say.

Other data released at 2330 GMT Nov. 28 shows the job market remains tight in a sign that a shortage of workers could increase pressure on wages, as well as in labour intensive industries such as service sector firms.

The jobless rate fell to 2.5 per cent in October from the previous month's 2.6 per cent.

More than 10 jobs were available for 13 job-seekers in October, up from 1.34 seen in the previous month.

Land ministry data due to be released at 0500 GMT Nov. 30 likely showed housing starts fell 1.3 per cent year-on-year in October, coming from a 1 per cent gain seen in the previous month.