Japan’s industrial production dropped -3.7% mom in March, down from February’s -0.3% mom, but was better than expectation of -5.2% mom. But that still the sharpest fall in production since October last year. Retail sales dropped -4.6% yoy, down from February’s 1.6% yoy, slightly better than expectation of -4.7% yoy. That’s also the sharpest decline since last October’s sales tax hike. Housing starts dropped -7.6% yoy, much better than expectation of -16.0% yoy.
The parliament is set to enact a JPY 25.69 trillion supplementary budget for fiscal 2020 today. The House of Councillors is generally expected to approve the extra budget, which was passed by House of Representative already, to cushion the economy from the impact of the coronavirus pandemic. Meanwhile, Prime Minister Shinzo Abe would announce the extension of nationwide state of emergency that is due to end next Wednesday.
