Japan’s factory output jumps, retail sales plunge on pandemic hit
July had seen Japan’s factory output advance at its fastest pace on record. Automobile and car components fuelled the jump, suggesting a modest recovery from the coronavirus crisis.
Japan’s industrial output advanced 8.0% in July, placing higher than the 1.9% record seen in June. The reading also came higher than the 5.8% growth estimated by analysts.
While Japan’s manufacturing sector grew, the country’s retail sales plunged for five consecutive months. The drop was seen faster, raising a threat for private consumption that covers more than half of the world’s third-largest economy.
Data released on Monday underscored the fragility of Japan’s economy. It previously recorded a 27.8% contraction in the second quarter as the virus crisis ravaged both domestic and external demand.