Japan industrial production grew 1.3% mom in December, beat expectation of 0.7% mom. However, in the three months of October-December, factory output has indeed contracted -4.0%. That was the worst decline since data began in 2013. The Trade Ministry also said “the pace of rebound (in Dec) was not big… we will closely monitor whether factory output will recover in coming months.” It also kept the assessment of production as weakening.
Retail sales dropped -2.6% yoy in December, down for a third straight month, and missed expectation of -1.8% yoy. Unemployment rate was unchanged at 2.2%, better than expectation of 2.3%. Housing starts dropped -7.9% yoy, versus expectation of -11.5% yoy. Tokyo CPI core slowed to 0.7% yoy in January, down from 0.8% yoy, missed expectation of 0.8% yoy.
