Japan's manufacturing output declines for a second month amid a patchy recovery

Japan's industrial output is projected to shrink in October, marking the second month of declining performance. However, the retail sales sector will record its strongest growth rate since May 2021, showing a patchy recovery from the COVID-19 pandemic. This is reported by Reuters, which conducted a survey of 17 economists. 

The diverging indicators underscore the difficulties facing the country's economy on its way to sustained growth. Earlier, Japanese Prime Minister Fumio Kishida introduced additional measures to bring inflation down, adding to the mixed picture. However, the Prime Minister's ratings continue to fall. 

Data from the Ministry of Industry for October is likely to be published on November 29 at 23:50 GMT. The survey said industrial production is expected to decline by 1.5%. It could mark the second month of falling numbers, as Japan's economy had already recorded a 1.7% contraction in September. 

Takeshi Minami, chief economist at the Norinchukin Research Institute, noted that the country is seeing a recovery in auto production growth despite supply chain issues and chip shortages. But fears about a weakening global economy are growing, putting pressure on demand for electronic components and devices, which, in turn, are heavily influenced by the economic outlook.