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Japanese factory production in July slows as Delta variants spread to Asia: Reuters poll

Japan’s industrial output is likely to decline in July as export demand for capital goods stagnates and supply chains are further disrupted by the spread of delta coronavirus variants in Asia, Reuters said. The investigation revealed this on Friday.

Polls also predicted that retail sales, a key barometer of consumer spending, would increase year-over-year for the fifth straight month in July, supported by rising demand for electronics and clothing. showed that.

A poll of 18 economists predicted factory output would fall 2.5% from the previous month, after rising 6.5% in June, the highest growth rate since July 2020.

“The problem of chip shortages has put manufacturing pressures due to the global spread of delta variants, especially the impact on the supply of parts from Southeast Asia,” said Takeshi Minami, chief economist at the Norinchukin Institute.

Analysts at SMBC Nikko Securities said the expected decline in production was due to slow machinery exports to Asia, but added that a recovery in auto production is likely to offset some of the declines. rice field.

Poll analysts predict retail sales growth of 2.1% year-on-year, after rising 0.1% in June.

However, the pressures of the health crisis are likely to hold back consumer spending, and the statistical impact of last year’s slides is expected to distort the year-over-year rate.

The Department of Economy, Trade, and Industry released retail sales data on August 30 at 8:50 am (Greenwich Mean Time 2350) and the factory at 8:50 am on August 31 (Greenwich Mean Time 2350). Publish production data.

A poll on Friday predicted the unemployment rate would stabilize at 2.9% in July. The vacancy-to-applicant ratio, an indicator of vacancies, is expected to fall from 1.13 in June to 1.12.

Employment statistics will be released by the Ministry of Labor on August 31 at 8:30 am GMT and housing data will be published on August 31 at 2:00 pm GMT.

(Report by Kentaro Komiya, edited by Kim Coghill)

Japanese factory production in July slows as Delta variants spread to Asia: Reuters poll