Bit of a recap of the data releases from earlier on from Reuters. I’ve already recapped them here, but this Reuters take.

Japan’s factory output picked up in April and deflation abated slightly as a weaker yen and firmer overseas demand boosted growth, boding well for Prime Minister Shinzo Abe’s efforts to shake the world’s third-largest economy out of nearly two decades of stagnation.

  • core consumer prices continued to fall
  • manufacturers forecast further weakness ahead
  • “The deflationary trend shows no signs of changing,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance in Tokyo … “However, expectations for deflation, deeply embedded among the public, are very persistent,” Kodama said. “It appears quite difficult for monetary easing implemented by Governor Kuroda to achieve a positive cycle of inflation and economic recovery.”