Overview

• Japan's industrial production rose by 1.8% in December, driven by an increase in machinery and chemical output.
• Despite the increase, the rise in factory output was smaller than the expected 2.5%.
• Retail sales in Japan fell by 2.9% from November, raising concerns about domestic demand as inflation impacts household budgets.
• Manufacturers expect a decrease of 6.2% in output for January, followed by a 2.2% increase in February.
• A safety scandal at Toyota's small-car unit, Daihatsu, is expected to negatively impact future output.