The nation's industrial output tumbled more than forecast to the lowest level since the aftermath of the March 11, 2011 Great East Japan Earthquake, bolstering the case for Prime Minister Shinzo Abe to unleash large-scale stimulus.
The 1.7 percent drop in November from October exceeded all 27 forecasts in a Bloomberg News survey, a government report showed Friday. The nation also remained mired in deflation, with consumer prices excluding fresh food dropping 0.1 percent from a year before, compared with a central bank goal of 1 percent and Abe's desired target of 2 percent.
With South Korea reporting a jump in production almost double the highest estimate among economists surveyed, Japan's data may strengthen the new Abe administration's determination to drive down the yen and force the Bank of Japan to add monetary stimulus. On the fiscal front, Abe has told ministries to compile emergency spending proposals by Jan. 7.