Japan to release national factory output data
Japan is expected to release national factory output data today.
Factory output in Japan, a key driver of the economy, likely grew by 3.5% in March after a 0.6% decline in February, according to a recent survey.
The au Jibun Bank Japan tracked manufacturing purchasing managers’ index (PMI) rose to 49.9 this month, indicating that Japan is on the verge of growth in the manufacturing sector. The rebound in output comes after months of sluggish economic growth for Japan due to weak domestic demand and private consumption. Factory output fell by 7.5% in January, Japan’s fastest-paced slump since May 2020.
Japan’s economy will likely continue to recover at a moderate rate, especially as the upcoming summer tourism boom will help combat weak domestic markets. Automobile production may play a bigger role in economic growth in the coming months, after Toyota resumes production following the suspension of its shipments in January. This rebound may be sufficient to offset the decline in other categories of industrial goods production. However, output of industrial goods will likely continue to stagnate due to a slowdown in demand for Japanese goods such as steel and semiconductor manufacturing equipment, particularly in the Europe and US markets.
