Japan August manufacturing disappoints, but tax hike will proceed
TOKYO - Industrial production in Japan declined by 0.2% y/y in August from a 1.8% y/y increase in July, as automobile makers cut production due to sluggish demand following expiry of the Government's car purchasing incentives last year. BBVA Bank says the disappointing data may raise doubts about the sustainability of Japan's economic pickup after a strong expansion in the first half on aggressive monetary and fiscal stimulus measures.