Industrial production in Japan in the fourth quarter fell at a record pace

Moscow, 31 Jan – “News.Economy.” Industrial production in Japan in October-December showed a record decline against the background of weak external and domestic demand.

Photo: EPA/EVERETT KENNEDY BROWN

industrial Production in the fourth quarter of 2019 fell by 4%, according to final data from the Ministry of economy, trade and industry of the country. This is the sharpest decline since records began in 2013.

In December, however, the industrial production increased by 1.3%, exceeding the forecast: economists polled by Reuters had expected growth of 0.7%. In November, industrial output dropped 1% after falling 4.5% the previous month.

manufacturers surveyed by the Ministry of economy, trade and industry of Japan, it is expected that in January industrial production will grow by 3.5% in February and 4.1%.

Retail sales in Japan in December fell by 2.6% in annual terms. The decline recorded for the third month in a row. Economists on average had forecast a sales decline of 1.8%.

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Japan’s Economy may be in necessitava Japanese inflation twice exceeded the forecasts of the Central Bank of Japan kept its monetary policy and increased economic prognostika dynamics of retail sales reinforced fears about consumer spending after the October increase in sales tax.

Retail sales are a key indicator of the dynamics of private consumption, which accounts for about 60% of the Japanese economy.

the Disappointing data on industrial production and retail sales increase the likelihood that Japan’s economy shrank in the fourth quarter.

the Spread of a new type of coronavirus creates additional risk for the economy. As reported “Vesti.Economy”, the Minister of economic recovery of Japan, Yasutoshi Nishimura this week warned that corporate earnings and industrial production can suffer from outbreaks of coronavirus in China.

Separate data showed Friday that Japan’s jobless rate adjusted for seasonal fluctuations in December remained at 2.2%, near 30-year low.

the ratio of the number of vacancies and job seekers in the last month remained at the level of 1.57. This means that for every 100 job seekers accounted for 157 vacancies.

labour force in Japan is declining rapidly due to the aging of the population, which leads to low unemployment.

core consumer prices in Tokyo, which does not take into account prices for fresh food in January was 0.7%. Analysts on average had forecast growth of prices on 0,8% in annual expression.

Inflation in Japan remains significantly below the target 2% level, despite the low unemployment and years of massive monetary stimulus. Text: News.Economy