(RTTNews) - Friday saw a number of key economic data releases from major Asian economies. Japan’s inflation increased the most in more than a decade in July. Separate releases showed Japan’s unemployment rate eased from two-year high and household spending decreased in July. Official data showed economic growth slowed in India and Malaysia.

Japan’s Ministry of Internal Affairs and Communications said in a report that the overall inflation in Japan increased to 2.3% in July from 2% in June, marking the biggest rate since October 1997, when it rose to 2.5%. That was slightly higher than the expected rate of 2.2%.

The core CPI, which excludes volatile changes in fresh food prices increased 2.4% year-on-year in July. The figure increased for the 10th straight month, and followed a rise of 1.9% in June. Most economists were forecasting the core CPI to rise 2.3%. The July core CPI rose at the fastest pace since a 2.4% increase recorded in October 1997.

Core inflation in the Tokyo metropolitan area rose a preliminary 1.5% year-on-year in August. Overall CPI for the Tokyo area rose 1.3% in August, the biggest increase since March 1998.

Separately, the Ministry of Internal Affairs and Communications said the unemployment rate in Japan eased to 4% in July from the two-year high of 4.3% in June, and it also came in below analyst expectations of 4.1%.

In a separate communiqu�, the ministry said Japanese household spending eased an annual 0.5% in July, standing at an average JPY298,366. The July figure represented the fifth straight month of decline, although it beat analyst expectations of a 1.8% fall. Spending also fell by an annual 1.8% in June.
Overall household income was down 3.5% on year, with the income of household heads down 4.9%. Extraordinary income fell an annual 11% in July, while disposable income rose 3.9%.

Elsewhere, the Ministry of Economy, Trade and Industry said Japan’s industrial production climbed a seasonally adjusted 0.9% month-on-month in July. That beat analyst expectations that called for a 0.3% monthly decline and recovered from June’s 2.2 % fall. On an annual basis, industrial production jumped 2%, topping the forecast for a 0.6% gain and well above the flat reading in the previous month.

In another release, the Ministry of Economy, Trade and Industry said retail Sales in Japan increased 1.9 % year-on-year in July, marking the 12th straight month of increases in overall retail sales.

According to Japan’s Ministry of Land, Infrastructure and Transport, the Japanese housing starts increased 19% year-over-year in July, after declining 16.7% in June. Economists were looking for a 15% rise for July. This is the first increase in housing starts in the past 12 months. The annualized housing starts rose to 1.144 million units in July from 1.13 million units reported in the previous month. The number increased for the second straight month. The annualized housing starts stood slightly below the consensus forecast of 1.099 million units. In July, construction orders received by big 50 contractors surged 42.3% year-on-year, after falling 11.7% in June. Construction orders had declined in the past three months.

The Japan Automobile Manufacturers Association, or JAMA reported that automobile output jumped 24.1% in July from the previous year to 1.08 million units. At the same time, production of motorcycle recorded an annual fall of 23.3% in July. Further, the JAMA said domestic sales of automobile stood at 454,594 vehicles, up 3.6% annually and exports of automobile climbed 20.3%. Meanwhile, domestic sales of motorcycle were down 26.1% year-on-year and exports showed 21.8% fall in July.

A report from the Shokochukin Bank showed Japan’s small business confidence rebounded to 41.1 in August from 39.9 in July. The reading was well above the consensus forecast that called for the sentiment index to rise to 38. The index rose for the first time in five months.

In other news, South Korea’s current account swung to a deficit of $1.8 billion from a revised $159 million surplus in June after seasonal adjustments. The deficit stood at $2.45 billion in July prior to the seasonal adjustment, following a revised surplus of $1.82 billion in the previous month.

Separately, the central bank reported that South Korean bank’s average lending rate increased in July for the fourth straight month. Bank’s average lending rate for households and companies climbed 0.1 percentage points to 7.12% in July. According to the central bank, the corporate lending rate rose to 7.12% in July from 7.04% in June, while the rate for household moved up to 7.12% from 6.93%.

Elsewhere, South Korea’s National Statistics Office said in a report that the nation’s industrial production increased at a faster pace of 9.1% year-on-year in July, compared to 6.8% growth recorded in June. Economists had expected output to increase 7.9%. However, on a monthly basis, seasonally adjusted industrial output declined 0.2% in July, reversing 0.2% increase recorded in June and in contrast to 0.4% growth predicted.

India’s Central Statistical Organization and the Ministry of Statistics and Programme Implementation said in a report that the economy grew 7.9% year-on-year in the June quarter, down from an 8.8% expansion seen in the previous quarter and a 9.2% increase recorded in the corresponding quarter of the previous year. The current growth was also smaller than the 8% expected by economists. At current prices, the economy expanded 16.3% year-on-year. Asia’s third-largest economy lost its growth momentum in the June quarter as double-digit inflation and tight monetary conditions took a grip on consumer spending.

Elsewhere, the Bank Negara Malaysia said the Malaysian economy grew 6.3% year-on-year in the second quarter, slower than a 7.1% expansion seen in the first quarter. Economists were expecting the economy to grow 6%.

According to report from the Bank of Thailand, manufacturing production increased 10.9% year-over-year in July, after rising 11.2% in June. Economists were looking for a 10.5% rise. The central bank also reported that the current account deficit stood at $555 million in July. Economists were looking for a deficit of $800 million. Further, the central bank said the trade deficit stood at $762 million in July. The export value grew 43.9% and the import value increased 53.4%.

The Bangko Sentral ng Pilipinas announced that M3, the broadest money aggregate, rose 5.1% year-on-year in June, quicker than the 3.7% rise seen in May.

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