, Singapore

Japan industrial production rises for fifth consecutive month

As exports continue to expand.

BBVA noted that Japan industrial production rose for a fifth consecutive month in April, by 1.7% m/m sa, beating expectations (consensus of 0.6%; prior 0.9%) on improving exports.

"The data follow better-than-expected retail sales released earlier this week, and for the time being are lifting expectations once again about the growth outlook, in line with our 1.7% full-year growth projection," the research firm said.

Meanwhile, April CPI inflation came out in line with expectations at -0.7% y/y (consensus: -0.7%; prior: -0.9%,), which for BBVA suggested it will take at least two more years to meet the Bank of Japan’s 2% inflation target.

"In the coming week, the Japanese government is scheduled to unveil a roadmap for its growth-enhancing structural reforms, the 'third arrow' of the Abenomics strategy. At the conclusion of its 2013 Article IV discussions in Japan today, the IMF staff endorsed the BoJ’s monetary easing strategy, while underlining the importance of medium-term fiscal consolidation and growth enhancing structural reforms," said BBVA.

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