Japan’s industrial production experienced a contraction of -0.4% mom in April, a significantly worse result than expectation of 1.4% mom growth.
According to survey by the Ministry of Economy, Trade and Industry, manufacturers are forecasting an output increase of 1.9% in May and 1.2% in June. This rise is expected to be driven by an easing in parts shortages, which should lift production in transportation and production machinery.
Despite these projections, a METI official struck a more cautious note, stating, “The current production sentiment is still bearish due to ongoing concerns about the downturn in overseas economies.”
Meanwhile, the country’s retail sales also delivered disappointing results. They rose 5.0% yoy, falling short of the anticipated 7.1% yoy increase. On a month-on-month basis, retail sales contracted by -1.2% in April, reversing the 0.3% gain recorded in March.