Japan's industrial output rises in July

Japan’s industrial output rose in July, adding to signs that the economic recovery is underway before concerns about a global economic slowdown grew. On Wednesday, industrial output rose 1 percent from June, according to the industry ministry. Economists had forecast a 0.5 percent decline after a record 9.2 percent increase the previous month. A separate report showed retail sales rose 0.8 percent in July from the previous month, a sign of resilience even after infections surged last month. Still, Japan’s manufacturers will face headwinds as central banks prioritize controlling inflation at the expense of slowing economic growth. Bank of Japan Governor Haruhiko Kuroda, who has been out of the tightening cycle, vowed to keep stimulus in place over the weekend. Uncertainties about Japan’s factory output remain high. The ongoing semiconductor shortage and various one-off factors continued to weigh on automakers and manufacturers even after the end of the Shanghai lockdown.