A slew of economic data from Japan painted a widely divergent picture, with industrial production and inflation beating expectations, even as a better jobs picture failed to convince consumers to open their wallets.
“It’s still a bit early days,” Kathy Matsui, chief Japan strategist at Goldman Sachs, told CNBC. “We’re just in that transition period away from export driven growth in the economy to more domestic demand.”
Japan’s core inflation rose 0.3 percent on-year in April, coming in slightly ahead of forecasts for 0.2 percent from a Reuters poll. Industrial production in April rose 1.0 percent from the previous month, beating the Reuters poll forecast for 0.8 percent. Japan’s manufacturers now expect May output will rise 0.5 percent on-month in May, up from the previous forecast for a 0.3 percent decline.