Stronger-than-expected industrial production and solid labour market data suggest Japan’s economy continued to recover in the current quarter. A further easing of border restrictions and resumption of domestic travel aid programmes will support next quarter’s growth as well. Thus, ING upgrade 2022 GDP growth to 1.6% YoY from 1.2% previously
Industrial production recorded a third monthly gain in August
Industrial production in August rose 2.7% month-on-month seasonally-adjusted (vs 0.8% in July), beating the market consensus of 0.2%. In three-month sequential terms, IP rebounded quite sharply by 4.6% from -2.7% in June, suggesting that quarterly manufacturing growth in GDP is highly likely to turn positive.
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