30 November 2022 | Other

Japan’s industrial output decreases amid global economic slowdown

Japan’s industrial output showed negative growth for the second month in a row due to the fall of global demand and ongoing supply issues. All of these factors have a negative impact on the Japanese producers’ activity.

At the moment, the third-largest economy in the world is behind other developed countries in recovering from the pandemic. The decrease in industrial output, along with the weakening of business activity in the country in general, demonstrate the difficulties which it’s currently facing. In order to counteract a record level of inflation, the government of Japan supports the economy through the monetary stimulus policy.

In October, the country’s industrial output decreased by 2.6% compared to the month before. According to government data released on Wednesday, seasonal adjustments were taken into account. The output didn’t meet economists’ expectations, who on average assume a decline of around 1.5%. The decrease in the output in September in accordance with revised data was 1.7%.

Takeshi Minami, chief economist at Norinchukin Research Institute, stated that the decrease in Japan’s industrial output and export, combined with limited consumption amid inflationary pressure, might lead to a slowdown in the country's economy as early as the first half of next year.

Company MarketCheese
Period: 14.05.2025 Expectation: 1650 pips
Technical and fundamental background supports AUDCAD
07 May 2025 66
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 08.05.2025 Expectation: 550 pips
EURUSD to drop to 1.13000
07 May 2025 50
Period: 13.05.2025 Expectation: 240 pips
Brent crude price rebound to continue up to 65
07 May 2025 52
Period: 14.05.2025 Expectation: 1000 pips
Buying GBPUSD amid trade talks and weaker dollar with target at 1.344
07 May 2025 31
Period: 12.05.2025 Expectation: 1500 pips
USDJPY rebound fades ahead of Fed meeting
06 May 2025 66
Period: 30.05.2025 Expectation: 975 pips
Natural gas maintains upside potential within megaphone pattern
06 May 2025 67
Go to forecasts