Last time the Japanese government described industrial production as decreasing rapidly was in November 2008

Following a slew of Japanese data today, a Japnese government official has stated that the last time the Japanese govt described industrial production as decreasing rapidly was in November 2008.

Key comments

• Wide range of manufacturers cut production due to coronavirus impact.
• Last time japan govt described industrial production as decreasing rapidly was in November 2008.
• Auto production fell 33.3% MoM in April, largest m/m decline since comparable data became available in 2013.

Japan's factory output fell 9.1% in April, government data showed on Friday, compared with a median market forecast for a 5.1% drop. Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to shrink 4.1% in May and rise 3.9% in June, the data showed.

Key notes

• Japan government cuts assessment of industrial production.
• Japan government says industrial production is decreasing rapidly.
• Japan industrial production in April sees the biggest drop since comparable data became available in 2013.

In other data, Japans Retail Sales (MoM) for Apr were -9.6% (est -6.9%, prev R -4.6%). However, Japan Retail Sales in April has seen the biggest YoY drop since March 1998.

• Japan Retail Sales (Y/Y) Apr: -13.7% (est -11.2%, prev R -4.7%).

Market implications

These are compelling numbers for macro traders assessing the wider global economy with respect to an anticipated major downturn. USD/JPY is holding around 107.50 at the time of writing.