Japan factory output slips unexpectedly in March; retail sales beat forecasts

Japan’s factory output slipped unexpectedly in March, even as retail sales beat forecasts, according to market coverage of the latest government data.

Industrial production fell 0.5% month on month, compared with expectations for a gain. Retail sales rose 1.7% from a year earlier, topping the 0.9% forecast cited in market reports.

The mixed signals came as the Bank of Japan kept its policy rate around 0.75% in its April 28 monetary policy statement. The central bank’s steady stance leaves attention on whether recent data will support or complicate its path toward future tightening.

METI had scheduled the March industrial production and commerce releases for April 30 at 8:50 a.m. JST, and Reuters-linked market coverage carried the numbers within minutes of publication.

For now, the data point to a manufacturing sector that remains under pressure even as consumer spending showed more resilience.