|
The
rise in core consumer prices (CPI) in Tokyo areas, which become
available a month earlier than nationwide, likely quickened in
May.
Many analysts expect the economy to bottom out, returning to
growth this quarter. The economy contracted an annualized 2% in
the first three months of this year as rising inflation driven
by the weak yen made consumers more cautious about spending.
"A pick-up in transport equipment machinery will continue due to
resumption of car factory activity. In addition, a recovery in
demand overseas will help push up output of chip-making and
other production machinery," analysts at SMBC Nikko Securities
wrote in a note.
The poll of 18 economists found factory output likely grew 0.9%
in April from a month earlier, following a 4.4% gain in March.
The Tokyo-area May core CPI, which excludes fresh food prices,
likely accelerated to a year-on-year rise of 1.9% from 1.6% in
April due to an increase in renewable energy levy.
The CPI data, which serves as a leading gauge of inflation, will
be published on May 31.
On Friday, separate government data showed the nationwide core
CPI rose 2.2% year-on-year in April, slowing a bit but remaining
at or above the central bank's 2% target for more than two
years, complicating the Bank of Japan's efforts to raise rates
further.
The central bank raised rates in March for the first time since
2007 in a landmark shift away from negative interest rates.
Data due on May 31 will likely show a steady jobless rate at
2.6%, with 1.28 jobs available for every job seeker.
Year-on-year growth in retail sales likely accelerated to 1.9%
in April from 1.2% in the previous month, broadly reflecting
private consumption that accounts for more than half of the
country's economic output.
A slump in housing starts is expected to ease, with starts seen
down 0.2% in April from a 12.8% slide in March.
Data on industrial output, retail sales and housing starts is
due out on May 31.
(Reporting by Tetsushi Kajimoto; Editing by Subhranshu Sahu)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
