Japan factory output advances for third month; gradual recovery monitored

Japan’s factory output likely recorded three consecutive months of expansion ended August. However, it is monitored at a slower pace, indicating a modest recovery in the manufacturing sector, a Reuters survey showed on Friday.

Industrial output is predicted to have advanced 1.5% in August. It previously recorded a revised 8.7% growth in July, the fastest pace on record as domestic and global demand emerged from coronavirus-driven declines.

The survey of 17 economists also showed a 3.5% year-on-year decline in retail sales last month. The decline marked retail sales’ sixth month of continuous decline as coronavirus-related concerns kept consumers at home.

Economic analysts foresee the jobless rate to record a 3.0% increase in August. This came a shade higher than the 2.9% record seen in July. Moreover, jobs-to-applicants ratio likely dropped from 1.8 in July to 1.05 in August.