Growth in Japan’s factory output likely accelerated in January and core inflation hovered near five-year highs, a Reuters poll showed, underscoring the ongoing economic recovery despite fears that momentum may soon start to fade.
Retail sales probably increased while job conditions held firm, in a sign that an improving labor market and firm demand are driving private consumption, which accounts for 60 percent of the economy.
The slew of indicators, all due next Friday, come on the heels of data earlier this week that showed weaker-than-expected fourth quarter growth due to disappointing exports, capital spending and private consumption.
Weak readings could heighten market expectations that further stimulus will need to be rolled out by the government and the Bank of Japan, which remain upbeat on the economy despite worries about the potential blow from a planned sales tax hike in April and weak demand from emerging economies.
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