Japan’s economy likely made a moderate recovery in the second quarter as factory output rebounded strongly after China eased COVID-19 lockdown curbs in Shanghai, reducing supply disruptions that had rippled through regional manufacturing activity.
Output of cars, electronics parts and communications equipment led an 8.9% gain in industrial production in June from the previous month’s sharp drop, according to the trade and industry ministry Friday. That was more than double the gain forecast by economists.
Other data showed inflation in Tokyo continued to pick up speed beyond the central bank’s target while retail sales fell from relatively high levels a month earlier. The labor market showed some signs of tightening.