Today markets got to know a few figures. They are as follows:
- industrial production (-0.5% m/m vs expected 1.0%m/m)
- construction orders (-15.6% y/y vs -4.0% y/y previous month)
- vehicle production (-4.7% y/y vs -5.9% expected)
- large retailer’s sale (1.8% y/y vs 1.3% expected)
- retail sales (0.0% m/m vs 0.5% m/m expected)
Almost all readings were worse than in previous month and than markets had expected.
Especially data concerning industry in Japan is pessimistic as earlier swallows on the horizon (labor market, wages) are fading away as falling industrial output shows that Japanese companies will not be eager to dynamically increase investment.
Maybe that’s why PM Shinzo Abe calls for Abenomics 2.0 when seeing Abenomics 1.0 failing to boost the economy?