Output data adds to evidence of Japan's recovery from tax hike

Tokyo

IN a further sign that the world's third largest economy is recovering from the shock of April's consumption tax hike, Japan's Ministry of Economy, Trade and Industry said on Wednesday that industrial output rose by a faster-than-expected 2.7 per cent in September compared with the level a month earlier.

Coming on top of Tuesday's announcement that retail sales accelerated by a faster than forecast pace of 2.3 per cent in September over their level a year earlier, the latest data suggests that the sales tax hike, which led to a 7.1 per cent drop in Japan's second-quarter GDP, has been absorbed, analysts said.