Japan's Industrial Production and Retail Sales Growth Falls Short of Expectations

In October, Japan's industrial production increased by 3.0% compared to the previous month. The median market forecast was an increase of 3.9%. Manufacturers participating in a survey conducted by the Ministry of Economy, Trade, and Industry expect seasonally adjusted production to decline by 2.2% in November and by 0.5% in December. The shipments index rose by 2.8% month-on-month, reaching 102.6, while it showed a year-on-year increase of 0.6%. The inventories index stood at 102.2, registering a decrease of 0.1% from the previous month and 1.4% from October 2023. The inventory ratio decreased by 1.4% month-on-month and by 0.9% year-on-year, reaching 104.1.

Japanese retail sales increased by 1.6% in October compared to the previous year. This increase fell short of the median market forecast of 2.2%. Japan's unemployment rate rose to 2.5% in October, up from 2.4% in September. The seasonally adjusted unemployment rate matched economists' median forecast. The ratio of job openings to applicants rose to 1.25 in October, up from 1.24 in September. The median forecast was 1.24.