Japan’s industrial output stutters in November as global risks pressure growth
Industrial output contracted by 1.1% in November on a month-on-month basis due to a pullback in output from the general-purpose machinery segment.
Japan’s factory output shrank for last month, reversing from the gains in October, government data showed on Friday.
Industrial output contracted by 1.1% in November on a month-on-month basis due to a pullback in output from the general-purpose machinery segment. The reading contrasts from a 2.9% increase in October. Economists had expected a 1.9% decline for the month.
Manufacturers are feeling dismal towards industrial output performance in the coming months. Based on a survey by the Ministry of Economy, Trade and Industry, manufacturers expect output to rise 2.2% in December but to fall by 0.8% in January.
After a slew of natural disasters which hit the nation from July to September this year, affecting businesses and disrupting factory production, economists expect the country to rebound for the last quarter of the year.
However it remains to be seen for the trade-dependent economy as the world continues to be mired in global risks such as the China-United States (US) trade war, US fiscal and monetary policies, and trade protectionism stance seen from some countries.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Live prices on most popular markets
- Forex
- Shares
- Indices
