Japan’s manufacturing, retail sectors struggle worse than expected
April records showed that Japan’s factory output dropped at a pace faster than what was initially predicted. More so, the country’s retail sales plunged the sharpest in more than two decades as the COVID-19 pandemic introduced more economic disruptions.
The country’s factory output declined by 9.1% in April as frail global demand brought heavy production declines. The weak figure surpassed the 5.1% Reuters forecast as it came to be the sharpest drop since 2013.
A separate record showed that the country’s retail sales dropped to its lowest level since 1998 as lockdowns restricted the services sector from operating.
Global activity was heavily curbed in April as government-implemented restrictions disrupted supply chains. More so, lockdowns prompted consumers to cancel purchases, completely dragging the outlook for the world’s third-biggest economy.