Investing.com-- Japan’s factory output unexpectedly rose in April while retail sales growth accelerated, data showed on Friday, offering some relief for policymakers as the economy grapples with rising energy costs and uncertainty over global demand.
Industrial production increased 0.8% in April from the previous month, government data showed, defying market expectations for a 0.4% decline and rebounding from a revised 0.4% fall in March.
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Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to rise 5.1% in May before slipping 0.4% in June, pointing to continued near-term volatility in production trends.
The stronger-than-expected reading was driven by gains in semiconductor equipment and machinery production, underscoring resilient demand linked to artificial intelligence-related investment.
Separate data showed retail sales rose 2.1% in April from a year earlier, matching March’s pace and topping market forecasts for 1.4% growth.
The solid retail data suggested consumer spending remained resilient despite persistent inflation and higher living costs.
The figures come as the Bank of Japan weighs further interest rate hikes. Resilient domestic demand and improving factory activity could support the central bank’s case for another hike next month.
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