Japan's factory output to fall as Delta spreads

Japan's industrial output likely fell in July as export demand for capital goods stagnated and supply chains were further disrupted by the spread of the Delta coronavirus variant in Asia, a Reuters poll showed on Friday.

The poll also showed retail sales, a key barometer of consumer spending, were expected to post a fifth straight month of year-on-year gains in July, helped by growing demand for electronics and clothing.

Factory output was projected to have fallen 2.5 per cent from the previous month in the poll of 18 economists, dropping into contraction after a sharp 6.5 per cent jump in June, the highest growth since July 2020.