Japan’s industrial production misses forecasts in Jan, sees first fall in six months

Japan’s Ministry of Economy, Trade and Industry (METI) on Tuesday said that industrial production in Japan was down 0.8 percent on month in January. Data widely missed analysts' forecasts for an increase of 0.4 percent and compared to a 0.7 percent rise in December.

The biggest drag on Japan's industrial production in January was the drop in production of cars, engines and other transport equipment, which was down 4.7 percent. In annualized terms, industrial production advanced 3.2 percent official data showed, also missing expectations for 4.4 percent rise but unchanged from the previous month.

Japan's industrial production fell for the first time in six months in January. The unexpected weakness points to the risk of depending on external demand for recent economic growth. Data raised questions about the sustainability of Japan’s export-driven growth in the second half of 2016.

Separate data showed that Japan's retail sales rose more than expected in January. Data released by METI showed that retail sales in Japan were up a seasonally adjusted 0.5 percent on month in January, beating expectations for an increase of 0.3 percent after dropping an upwardly revised 1.6 percent in December.