Lat­est eco­nomic fig­ures dis­ap­point

The Myanmar Times - - International | Business -

JA­PAN’S fac­tory out­put and re­tail sales were flat last month, data showed yes­ter­day, paint­ing a bleak pic­ture for the world’s num­ber-three econ­omy as the cen­tral bank kicks off a pol­icy meet­ing.

The luke­warm read­ings come on the heels of dis­ap­point­ing in­fla­tion fig­ures last week and point to a tepid ex­pan­sion in July-Septem­ber eco­nomic growth, an­a­lysts said.

Ja­pan’s third-quar­ter growth fig­ures are due later this month.

The gov­ern­ment data showed Ja­pan’s in­dus­trial out­put for Septem­ber was un­changed from the pre­vi­ous month, weighed by slower pro­duc­tion of elec­tronic com­po­nents, ac­cord­ing to the Min­istry of Econ­omy, Trade and In­dus­try.

That was well short of a mar­ket fore­cast for a 0.9 per­cent rise af­ter an on-month ex­pan­sion in Au­gust. Re­tail sales were also un­changed, miss­ing fore­casts of a 0.2pc rise.

The Bank of Ja­pan kicked off a two­day meet­ing with a pol­icy an­nounce­ment ex­pected to­day.

The BoJ has re­peat­edly pledged to con­tinue mon­e­tary eas­ing as needed un­til in­fla­tion reaches a 2pc tar­get, a cor­ner­stone of Prime Min­is­ter Shinzo Abe’s eco­nomic re­vival pol­icy.

More than three years on, how­ever, doubts are grow­ing over Mr Abe’s fal­ter­ing bid to kick­start growth and con­quer a long bat­tle against deflation.

Ja­pan’s econ­omy con­tracted in the last three months of 2015, be­fore bounc­ing back in Jan­uary-March with a 0.5pc rise on-quar­ter and then a 0.2pc ex­pan­sion in April-June. –

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