Economic data released from Japan showed strain in both the business and consumer sides of the economy. Industrial production dropped for the second month in a row, by -0.9% mom in November. Though, that came in better than expectation of -1.4% mom. Back in October, production dropped -4.5% mom, largest month-on-month decline since 2013. Both months’ data pointed to sharp contraction in factory output in Q4.
Meanwhile, retail sales dropped -2.1% yoy in November too, worse than expectation of -1.7% yoy. Back in October, sales dropped sharply by -7.1% as sales tax hike took effect, worst since 2015. Sales had clearly not recovered yet and is poised to have a weak quarter too.
Though, on the positive side, unemployment rate dropped to 2.2% in November, down from 2.4%, beat expectation of 2.4%. Tokyo CPI accelerated to 0.8% yoy in December, up from 0.6% yoy, beat expectation of 0.6% yoy.
