Japan: Preliminary May IP dropped -2.3%/m - TDS

Research Team at TDS, notes that Japan’s preliminary May IP dropped -2.3%/m (output dropped in 11 of 15 sectors), and is virtually unchanged on the year, vs expectations for a near 2%/yr gain.

Key Quotes

“This follows data yesterday showing retail sales were flat in May and down 2%/yr and with the yen rallying hard this month, recent data only adds fuel to a faltering Japanese recovery.

Weekly Japan bond flow data released for the week ending June 24 showed buying of foreign bonds rebounded. In contrast, foreign investors were significant sellers of JGBs, consistent with flows seen towards the end of each quarter, but the selling was the most since 2008.”