Japan's production growth likely declined in July

Japan's industrial production for July is scheduled to released today. The industrial production for July is likely to show a decline of 0.6% mom, after firm growth in June (+1.1% mom), estimates Societe generale. Production has been volatile during the last three months (+1.2% mom in April, -2.1% mom in May, and +1.1% mom in June), probably due to the unstable export environment. Real exports have also been weak (+0.6%mom in July, -5.1% mom in May and +1.0% mom in June), notes SocGen. Overseas demand remains unstable, and many companies are unwilling to invest in inventories.