Japan factory output, retail sales seen up, virus resurgence clouds outlook: Reuters poll

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Japan's factory output probably grew for a fifth straight month in October and retail sales likely rebounded for the first time in eight months, a Reuters poll showed on Friday, offering further signs that the economy is gradually recovering from the COVID-19 pandemic.

FILE PHOTO: A worker cycles near a factory at the Keihin industrial zone in Kawasaki, Japan February 28, 2017. REUTERS/Issei Kato

However, a recent sharp jump in coronavirus cases is clouding the outlook, and expected softness in the job market and declining housing starts indicate a weakening of household purchasing power amid the health crisis. Trade ministry data out Monday is expected to show industrial output rose 2.1% month-on-month in October, up for the fifth straight month but slowing from the prior month’s 3.9% rise, the poll of 17 economists showed.

Internal affairs ministry data is expected to show the seasonally adjusted jobless rate edged up to 3.1% in October from the previous month’s 3.0%, in a worrying sign for job losses caused by the pandemic, the poll found.

 

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