Japan's industrial production fell in February and the unemployment rate held at the lowest level since March 2009, underscoring an uneven economic recovery that has yet to end deflation.
The 0.9 per cent drop in factory output from a month earlier breaks 11 straight gains and followed a 2.7 percent increase in January, the Trade Ministry said in Tokyo. The jobless rate stayed at 4.9 percent after two monthly declines.
The reports highlight the challenges for Bank of Japan policy makers, who have said economic growth has matched or exceeded their projections even as consumer prices keep falling.
Separate government reports today showed household spending slipped 0.5 per cent in February, the first decline in seven months,
while the ratio of jobs available to applicants improved for a second month.
The Nikkei 225 Stock Average climbed 0.5 percent, taking its gains this month to 9 percent. Lunar New Year Production fell more than the 0.5 percent median decline projected in a Bloomberg News survey of economists.
The government left unchanged its assessment that production is picking up. Output surged 31.3 per cent from a year earlier, when the country bore the brunt of a collapse in world commerce amid the financial crisis, today's report also showed. More than $2 trillion in stimulus spending worldwide helped Japanese exports surge the most in 30 years in February from a year ago.
Bloomberg