Factory output in Japan in May drops for second month of China lockdown: Reuters poll

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A worker rides a bicycle near a factory at the Keihin Industrial Zone in Kawasaki, Japan November 15, 2017. REUTERS/Toru Hanai

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TOKYO, June 24 (Reuters) – Production at the Japanese factory likely fell in May for a second straight month due to supply chain disruptions caused by China’s strict COVID-19 lockdowns, it revealed on Friday. a Reuters poll.

Japanese industrial production in the month was likely 0.3% lower than April, according to the median estimate of 18 economists in the poll.

That would follow a 1.3% drop in April, which was the first fall in three months. Read more

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“Bottlenecks from the semiconductor crisis and component shortages from China’s Shanghai lockdown likely kept (Japan’s) production low,” said Shumpei Fujita, an economist at Mitsubishi UFJ Research and Consulting.

Some analysts, meanwhile, expected a slight increase in factory output in May thanks to robust manufacturing of electronic parts and production machinery.

Less optimistically, Japan’s production outlook “remains choppy, with growing concerns about things like a prolonged and unexpected supply disruption and rising commodity prices. “said Takeshi Minami, chief economist at the Norinchukin Research Institute.

In other poll results, May retail sales are expected to have risen 3.3% from a year earlier, posting the third month of annual growth.

The poll also found that Tokyo’s core consumer price index – a leading indicator of price trends in Japan – was likely 2.1% higher in June than a year earlier, accelerating from compared to an annual increase of 1.9% observed in May.

Japan’s unemployment rate in May was flat at 2.5% and the jobs-to-applicants ratio is expected to climb to 1.24.

The Ministry of Industry will release factory production data on June 30 at 8:50 a.m. (June 29 at 23:50 GMT) and retail sales data on June 29 at 8:50 a.m. (June 28 at 23:50 GMT).

Tokyo CPI and employment data are due July 1 at 8:30 a.m. (June 30 at 23:30 GMT).

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Reporting by Kantaro Komiya; Editing by Bradley Perrett

Our standards: The Thomson Reuters Trust Principles.

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