Industrial output rebounded more than expected in July, but retail sales declined sharply and production was set to contract again next month, signaling a bumpy road for an economy facing growing global strains.
Over the past year, Japan's economy and its manufacturers have been pressured by slowing global growth and a protracted trade war between the United States and China that has disrupted world supply chains and business investment.
Industrial output rose 1.3 percent in July, government data showed, more than a median market forecast of a 0.3 percent gain. But that hardly recouped the sharp 3.3 percent drop in the previous month.
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