(Earlier South Korean IP was released for July, a beat and up for a 3rd consecutive month ... anyway onto Japan...)

Japan's July (preliminary) industrial production unchanged at 0.0% m/m MISS

  • expected +0.8%, prior +2.3%

-3.8% y/y MISS

  • expected -3.0%, prior -1.5%
  • y/y result is its 4th straight fall, lowest since January of this year

Looking ahead,

  • Manufacturers see August output at +4.1% m/m
  • See September output -0.7% m/m

What will the BOJ take from this data? The bank is conducting a comprehensive assessment of policy for its September meeting. I reckon they might have to scale back their targets for inflation, extend the time etc. Japan may well be a sneak economic preview for many ageing societies, demographic developments are not helping economic policymakers achieve growth goals.