According data from Japan’s Ministry of Economy, Trade and Industry, industrial production grew 8.0% mom in July, well above expectation of 5.0% mom. That’s also the quickest jump on record since 1978. Manufacturers are expect output to grow further by 4.0% mom in August, and further by 1.9% in September. However, METI expects output to remain below pre-pandemic level for some time. Over the year, production was down -16.1% yoy.
On the other hand, retail sales dropped -2.8% yoy in July, much worse than expectation of -1.7% yoy. Housing starts dropped -11.4%, better than expectation of -13.7% yoy. Consumer confidence edged down to 29.3, down from 29.5, missed expectation of 29.4.
As Prime Minister Shinzo Abe is stepping down, it’s reported that the ruling LDP will vote on September 14 to select a new leader.