TOKYO - Japan’s industrial output rose in February at a slower pace than the previous month and factories expect production to plunge in March, adding to growing signs the coronavirus pandemic is taking a toll on an economy already on the cusp of recession.
Analysts say the full impact of the pandemic will start to appear in data for March and beyond, which some say could show Japan on course for a deep stagnation. Factory output rose 0.4% in February, government data showed on Tuesday, exceeding a median market forecast for a 0.1% gain but slower than the 1.0% increase in January.
The forecasts may prove too optimistic as they were taken in early March, when companies had less clarity on the extent of damage from the pandemic, a government official told a briefing. Abe has pledged a huge stimulus package that would be bigger than one launched during the global financial crisis to cushion the outbreak’s hit to growth.The jobs-to-applicants ratio fell to 1.45 in February from 1.49 in January, labor ministry data showed, marking the lowest level in nearly three years.