Japan: Industrial output improving - BBH

In Japan, industrial output is improving with the help of better exports as noted by the analysts at BBH.  

Key Quotes

“Despite firm labor market, household spending remains depressed.  Since August 2015, it has only risen on a year-over-year basis once (February 2016).   Meanwhile, core inflation (excludes fresh food) is expected to rise to 0.2% from 0.1%.  While this may not sound impressive, it would be the highest core reading since April 2015.”

“BOJ policy is set, and the immediate interest has shifted to a scandal involving a conservative school's ability to get a sweetheart deal and whether the Prime Minister or is wife gave a modest sum of money to it.  Although support for the cabinet has fallen, it is not (yet) a significant factor that is offsetting the other economic drivers, like interest rate differentials.”