0038 GMT - A batch of August data confirms that Japan's GDP declined this quarter but that's unlikely to stop the central bank from resuming rate hikes next month, Capital Economics says. The latest industrial production figures showed another decline last month, with forecasts suggesting that output barely rose in September, writes Marcel Thieliant, head of APAC at CE. Retail sales were even more downbeat, and volumes are on track to drop over 2% sequentially this quarter. That said, the Bank of Japan's consumption activity index tends to be a more reliable guide to consumption, and the gauge suggests consumption will have fallen only modestly this quarter, says Thieliant. Noting that a 3Q GDP decline would follow a strong performance over the past year, CE thinks BOJ will take any renewed slowdown in stride. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

September 29, 2025 20:38 ET (00:38 GMT)

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