Japan’s latest government forecasts of the industrial production for July anticipate a decline in the activity while also saying that the industrial output is seesawing, per a Reuters report published early Thursday.
Manufacturers surveyed by the Ministry of Economy, Trade and Industry unveiled a 2.0% MoM fall in Industrial Production for July, versus market expectations of -1.4% and 2.4% previous readings.
It’s worth noting that the government report also states expectations of witnessing an increase in the seasonally adjusted output to rise 2.6% MoM in August (versus previous forecast of 1.1%) and 2.4% in September.
Additionally, Japan’s Retail Trade for July improved to 6.8% YoY versus 5.4% expected and 5.6% prior (revised).
Japan government official’s comments
Following the data and forecasts, the Japan government official stated that the factory output in August has undershoot risk due to global economic downturn.
The diplomat also cited the need for careful monitoring by citing a fall in demand both domestically and abroad in July.
Further, Japan’s government official also marks the severe outlook for chips manufacturing machinery due to the weak overseas demand.
“Unless Chinese economy recovers, output in Japan would be weak,” adds the diplomat from Tokyo.
USD/JPY pares intraday losses
Following the data, USD/JPY started picking up bids to 146.10 at the latest. Even so, the Yen pair prints mild losses on a day.
Source: https://www.fxstreet.com/news/japan-government-forecasts-decline-in-industrial-production-for-july-202308302353