Japan industrial output dropped 1.2%
Blame it on exports demand from China and Europe falling sharply.
According to BBVA Research, Japan’s industrial production dropped unexpectedly in July by -1.2% y/y from a +0.4% y/y gain in June, as external demand fell sharply, particularly from China and Europe.
Here's more from BBVA:
Meanwhile, Japan’s PMI, released yesterday, points to further weakening in the economy, falling to 47.7 in August from 47.9 in July. Separately, today’s data also showed that consumer prices slid at a faster pace in July, by -0.4% y/y (consensus: -0.3% y/y) from -0.2% y/y in June. The Bank of Japan is under growing pressure to ease monetary policy to support a stalling recovery.