Trump's tariffs spur Japanese industrial production to its highest in 11 months

According to Bloomberg, Japan's industrial production saw its highest growth in a year last month, driven by companies eager to meet strong supplier demand before the US introduce new tariffs on car and auto part imports. 

In February, factory output rose by 2.5% from January, marking the first advance in four months, as reported by the Ministry of Economy, Trade, and Industry. This gain is the most significant since March 2024. Economists surveyed by Bloomberg had predicted a more conservative rise of only 2%.

To put it simply, national output climbed 0.3% from the previous year, falling short of the expected 1.2% growth. 

The ministry further revealed that retail sales climbed 0.5% in February from January, slightly beating forecasts, while showing a 1.4% year-on-year increase.

The data released is consistent with the Bank of Japan's assessment that the economy is recovering moderately, even though some areas are still showing signs of weakness. The authorities will be keeping a close eye on the manufacturing sector in anticipation of new US trade tariffs being enacted.