Trade tensions weighing on output in Japan
-3.7% m/m for a big miss – terrible data for Japan output
- expected -2.5% m/m, prior -0.1%
0.0% y/y
- expected 1.3% y/y, prior -1.9%
Outlooks for Japanese manufacturers from the METI:
- see Feb output +5.0% m/m
- see March output at -1.6% m/m
January IP falling its hardest since the same month in 2018
- this is the third consecutive monthly decline
As noted in the preview (link below), there can be distortions in Jan and Feb data due to the Lunar New Year celebrations in China.
To the extent this impacts BOJ thinking it further distances the prospect of any exit from easy monetary policy. Thus a yen negative.