Japan Data Deluge Points to Economic Growth, Weak Inflation
- Jobless rate stood at 2.8% in March, a two-decade low
- March output declines by 2.1% on month, rises 3.3% on year
Japan's Jobless Rate Holds Steady
A flood of data the day after the Bank of Japan held its monetary policy unchanged indicates that the modest recovery in the world’s third-largest economy is continuing for a fifth quarter, yet inflation largely refuses to budge.
The central bank has been unable to reach its target of stable 2 percent inflation despite four years of stimulus from Governor Haruhiko Kuroda. With only subdued inflation, workers have not seen significant pay hikes, meaning household spending has been weak. On the other hand, industrial production been increasing, thanks to a pick up in external demand, with the central bank saying the economy was in an expansion for the first time in about nine years. This has led to high corporate profits.