Japan’s industrial production growth likely to have dropped in July

Japan’s real GDP growth expanded at an annualized rate of 4 percent in the second quarter of this year, marking the sixth straight quarter in which Japan’s GDP growth was positive on a sequential basis. This represents the longest winning streak in over a decade, noted Wells Fargo in a research report.

The usual end-of the month Japanese data barrage that is set to be released next week will give investors a sense of the current state of the economy in Japan. The nation is set to release its industrial production data this week for the month of July.

In the month of June, Japan’s industrial output had risen 2.2 percent, signifying that the Japanese factory sector came into the third quarter with a fair amount of momentum. Even if the consensus forecast appears for some pullback in production in July, the upward trend in the industrial production possibly continues to be intact, stated Wells Fargo. Consensus expectations is for the industrial production to have dropped 0.3 percent sequentially.

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