Japan’s factory output declines as Iran-US war dents demand outlook

Japan’s factory output decreased as the conflict in Iran threatened manufacturers’ profit margins due to increased energy costs and muddled prospects for global demand.According to a report released by the Industry Ministry on Thursday, industrial production fell 0.5% in March compared to the previous month. A 1.1% gain was anticipated by economists. Compared to forecasts of a 2.2% increase, output increased by 2.3% over the previous year.

The report released on Thursday depicts a time of transition, with manufacturers’ economic prospects beginning to wane as the effects of the Middle East crisis spread throughout the global economy. The Middle East crisis is a significant shock that presents a “serious threat to the global economy,” the IMF warned earlier this month. The IMF reduced its estimate for global growth in 2026 to 3.1%.
Also Read: Trade Setup for April 30: Nifty upmove faces rising oil prices test as 24,300 remains a barrierProduction in the petroleum and coal products industries declined along with the output of industrial and general-purpose machines. The overall output decreased for the second consecutive month. Manufacturers anticipate higher output in April and May, according to the ministry.

In addition, retail sales improved 1.7% from a year ago and 1.3% from February in March, reversing the previous month’s dips. In the face of ongoing inflation, consumption trends are still precarious. For the first time in five months, Japan’s primary inflation indicator increased in March.