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Japan’s industrial output falls at fastest pace in 8 months

Japan’s industrial production fell 4.6% from a month ago in January, the largest decline in eight months, according to preliminary data released on Tuesday.

The market estimate was a decrease of 2.6%, following December’s 0.3% growth.

The steep drop was driven by auto products, chip-making equipment, electronic parts and devices, data from the Economy, Trade and Industry Ministry showed.

On an annual basis, industrial production dipped for the third month in a row, down 3.1% in January.

On the other hand, separate data showed Japan’s retail sales jumped 6.3% year-on-year, exceeding the market forecast of a 4% hike.

This was the fastest rise in nearly two years as consumption grows with the economy fully reopening after COVID-19 restrictions were lifted.

Commercial sales in January reached 45.7 trillion yen ($335 billion), increasing 3.2% from a year ago, while wholesale sales climbed 2% to 32.7 billion yen ($239 billion).

Source: Anadolu Agency