Japan Factory And Inflation Show Gains in January

February 21, 2014 Share Print 0

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.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.