Japan factory output suddenly surges
In April, Japanese factory output suddenly soared. It’s because a batch of earthquakes in the southern part of Japan didn’t have a great effect on production and it definitely powers hopes for the national economy currently squeezed by weak consumption and exports.
Household spending dropped less than expected in that month, while job availability reached a 24-year peak, a definite relief for Shinzo Abe, Japan’s prime minister, expected to delay a planned sales tax lift next year to avert a hammer blow to rather a fragile economic recovery.
The overall effect on production from the earthquakes might linger with high inventory levels. However, the chance Japan can avert a huge tumble in its second-quarter GDP has surged, as some analysts state.
In April, factory output went up 0.3% from the previous month, thus confounding market forecasts for a 1.5% dip drop and following a 3.8% soar in March, according to the data offered by the Ministry of Economy, Trade and Industry on Tuesday.