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Japan factory output to post first rise in 4 mths as bottlenecks ease: Reuters poll -Breaking

By Kantaro Komiya

TOKYO (Reuters – Japan’s factories likely increased in October after June. Retail sales, however, saw their first increase in three months due to eased COVID-19 limitations, a Reuters poll revealed.

Stronger data suggest that the recovery is picking up speed, which bodes well for policymakers. They hope that a surge in household spending and robust business activity will return the economy to pre-pandemic levels early next year. Japan’s recovery has been slow compared to major countries.

Although the world’s third largest economy experienced a slower contraction than anticipated in July and September, it is still expected to recover in this quarter. Last week, the government announced an unprecedented $490 billion economic stimulus package to support recovery.

According to a Reuters survey of 18 economists, October’s industrial output data is expected to rise 1.8% month on month. This follows a fall of 5.4% in the preceding month.

Shumpei Fujita, an economist with Mitsubishi UFJ (NYSE) Resarch and Consulting said “Shortage of car components is gradually easing.”

Japan’s Number 1 export product, the automobile manufacturer – Toyota Motor (NYSE): Nissan (OTC): Motor has slashed their production plans because of supply chain disruptions at Asian factories that have been affected by the coronavirus. Since July, the country has seen a three-month contraction in industrial production.

Fujita stated that automakers have shown that their output reductions are moving past the worst periods, and production is now on the road to recovery.

According to the poll, separate data suggests that retail sales rose 1.1% in Oct from one year prior, following a 0.6% drop in September.

While retail sales gained after coronavirus curbs having been lifted in October, it will still take time for sectors like face-toface services to recover fully.

Retail sales data will be available on Nov. 29th at 8 :50 (2355 GMT, Nov. 28), and figures for factory output on Nov. 30th at 8 :50 am (2350 GMT. Nov. 28). 29.)

According to the poll, November 30, at 8:30 am GMT (Nov. 29, 2330 GMT), jobs data is expected to reveal that October’s unemployment rate was 2.8% with a job-to applicant ratio of 1.17. This figure is virtually unchanged from the month before.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.