Japan's economy shows strain as factory output and retail sales drop | Metals Mine

  • Japan's economy shows strain as factory output and retail sales drop

    From channelnewsasia.com

    Japan's factory output fell more than expected while retail sales declined for the first time in over three years in August, government data showed, heightening uncertainties about the economic outlook. Although Tokyo struck a trade deal with Washington, analysts said U.S. tariffs could still affect Japan's production and the global economy, which is keeping the Bank of Japan on edge in terms of when to next raise rates. Industrial output fell 1.2 per cent in August from a month earlier, data from the Ministry of Economy, Trade and Industry (METI) showed on Tuesday, exceeding a median market forecast for a 0.8 per ... (full story)

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ZforexCM
Sep 30, 2025 2:50am
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The yen eased to around 148.7 per dollar on Tuesday as weak Japanese data offset recent gains. Factory output fell 1.2% in August and retail sales dropped 1.1% year-on-year, the first decline in 42 months. Electronics and metals weakened while autos rose, underscoring fragile momentum under tariff pressure and soft domestic demand.

The U.S.-Japan trade deal reduced tariffs on autos and other goods, but higher baseline tariffs still affect exports. BoJ Governor Ueda said rate hikes remain possible if growth and inflation align, while the Summary of Opinions showed policymakers were divided between tightening and caution.

Markets see little urgency for BoJ action, leaving USD/JPY direction tied to U.S. data and Fed expectations, with Japan’s economic weakness limiting yen demand.
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antonymurith
Sep 30, 2025 2:37am
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does it mean usdjpy pair will sell
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