FX.co ★ Japan’s industrial production grows by 1.6% in June

Japan’s industrial output expanded at a 1.6% pace month-on-month in June after expanding by 3.6% in May. Economists had expected a 1.5% increase.

Factory production rose by 4.9% in June over a year earlier, slightly down from economists’ projections of a 4.8% rise.

In the second quarter, production growth accelerated to 1.9% from the previous three- month period, marking the fastest pace of expansion since 2014.

The biggest contributor to the rise in June’s production figures was the transport machinery sector.

Manufacturers polled in the survey said they expect output to rise by 0.8% in July and increase by 3.6% in August.

Earlier it was reported that consumer spending increased by 2.3% year-on-year in June, while retail sales increased by 2.1% for the eighth month in a row.

According to experts, despite the fact that China’s production and consumption were strong enough in the second quarter, a more significant increase of wages and inflation is needed for sustainable economic growth.