TOKYO- Japan’s industrial output likely rebounded in June from the near double-digit decline in the previous month, in a sign factory activity may have bottomed out from the deep slump caused by the coronavirus pandemic, a Reuters poll of 13 economists showed.
While a relatively small rebound in factory output would point to a modest economic recovery ahead, the jobless rate was expected to creep up from decades-low levels, underscoring a more prolonged impact from the health crisis.
Ministry of Economy, Trade and Industry (METI) data out next week will probably show factory output grew 1.2 percent month-on-month in June, rebounding from a 8.9 percent decline in May caused by slumping output of cars and production machinery, the poll showed. An increase would snap four straight months of declines in factory output.
Although global demand for cars and other durable goods may have bottomed out as many countries have re-opened their economies, a slow rebound raised the spectre of a jobless recovery, which would undermine private consumption that accounts for more than half of the economy, analysts say.
The jobs-to-applicants ratio, or availability of jobs, probably worsened to 1.16 in June, from 1.2 seen in May, meaning that less than six jobs were available per five job-seekers. — Reuters
