Important developments today:
Japanese output shrinks in September; employment conditions improve
Japanese output shrinks in September; employment conditions improve. Industrial production dropped a seasonally adjusted 4% (m/m) in September, the first drop since the earthquake and tsunami in March according to the latest release from the Ministry of Trade and Economy. The sharp drop in output follows a 0.6% gain in August, and reflects both output disruptions from floods in Thailand as well as deteriorating export demand from a weaker global economy. In another data release, Japan’s unemployment rate unexpectedly dropped by 0.2 percentage points to 4.1% in September from the previous month, surprising most forecasts which had been expecting a deterioration in employment conditions.
Among Emerging Markets
In Sub-Saharan Africa, annual inflation in Kenya accelerated to 19.9% in October as food and fuel costs continued to pressure the consumer price index. This was the 12th consecutive increase in inflation, with a significant jump noted from 17.3% (y/y) inflation recorded in September.