This is the first reading for Japanese factory output in July.
I posted a preview yesterday, which is here: Fall expected on the month for July to kick of Q3, following very strong Q2 results
More:
This via Barclays:
- We estimate that production decreased m/m in July, but believe METI forecast indices for August and September will point to a q/q expansion in Q3.
- The rising inventory/shipment ratio in transport equipment and slowing exports to Asia have recently shown signs of moderation and business sentiment remains firm on solid overseas demand.
And, from HSBC:
- Industrial production rose 2.2% m-o-m sa in June, lifted by a recovery in passenger cars and other transport equipment, although following a revised 3.6% fall in May.
- On a y-o-y basis, factory output remains firm, rising 5.5% in June and an average 5.9% in 2Q17.
- Production likely remained volatile on an m-o-m basis and we forecast a 0.8% rise in July.
Its often the case that the yen sees little immediate impact from the release of Japanese data, but nevertheless the info is useful for contributing to an assessment of where the economy is at and how that could impact on policy. Signs have been indicating improvement in the economy, but with the Bank of Japan telling us they are focused on the 2% inflation target, which is still way, way off, there is no hint they'll be removing policy accommodation any time soon,. That's what they're telling us, anyway ... I have said recently I expect we'll see some 'flexibility' in the inflation target down the track (not soon).
Kuroda's most recent comments (at Jackson Hole) were still uber-dovish
