TOKYO (Reuters) – Japan’s factory output is expected to have slipped in June after rising the previous two months, a Reuters poll showed on Friday, as slowing global growth and the protracted U.S.-China trade war put more pressure on manufacturers worldwide.
Industrial production was forecast to slide 2.0% in June from the previous month, after a 2.3% jump in May and a 0.6% gain in April, the poll of 17 economists showed.
Cooling - Demand - Trade - War - Protectionism
A cooling of overseas demand due to the trade war and rising protectionism have weighed heavily on Japan’s economy this year, hurting exports and pushing manufacturers’ confidence to a three-year low.
“Exports are on a downtrend, which is having a detrimental impact on production activities and manufacturers’ capital spending,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
Production - Months - May - Inventory - Adjustment
“Though industrial production had risen for the second straight months in May, inventory has built up and adjustment pressures are considered to be high.”
The most recent data showed Japan’s exports fell for a seventh straight month in June, signaling a deepening of external strains on the world’s third-largest economy ahead of a scheduled nationwide sales tax hike in October that is expected to dent consumption.
Trade - Ministry - Factory - Output - July
The trade ministry will publish the factory output at 8:50 a.m. July 30, Japan time (2350 GMT July 29).
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