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Industrial production probably inched up 0.1 percent in July
from the previous month, the poll of 22 economists showed. In
June, production rose a revised 1.1 percent.
"I won't be surprised if the data shows the factory output fell
in July. Both domestic and overseas demand is weak and an
inventory adjustment has not been progressed," said Taro Saito,
director of economic research at NLI Research Institute.
"I expect the economy will recover in July-September but there
is a risk that China's economic slowdown accelerates, which
could cause Japan's exports to deteriorate further, and hurt
companies' productions," he said.
The trade ministry will release the factory output data on
August 31 at 8:50 a.m. (August 30 at 7.50 p.m. EDT).
The ministry will also announce manufacturers' output forecast
for August and September, which will offer some clues on how
production activity is shaping up in an economy struggling to
fire on all cylinders.
The world's third-largest economy shrank an annualized 1.6
percent in April-June on slumping exports and weak consumer
spending.
Analysts expect the economy will rebound in the current quarter
but growth may prove to be modest as a slowdown in China hits
global demand and investment sentiment.
Policymakers sound sanguine for now with BOJ Governor Haruhiko
Kuroda saying that China's slowdown is unlikely to hit Japanese
exports much.
The government also remains cautious of additional fiscal
spending, given Japan's massive public debt.
(Editing by Shri Navaratnam)
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